Alpha News

Concerns Raised Over Interest and Compound Interest on Loans Handled by Debt Collection Companies

Published February 13, 2026, 17:28

Finance Minister Makis Keravnos has expressed concern regarding the interest and compound interest applied to loans handled by debt collection companies. The Ministry of Finance is examining data from the Central Bank and engaging in consultations with various stakeholders, including the Financial Commissioner. Mr. Keravnos acknowledged that the interest and compound interest create a negative perception and that the Ministry is carefully considering the issue, taking into account international observations and evaluations. No specific action, such as legislative regulation or an action plan, has been decided yet, but the Ministry is closely monitoring the situation. The discussion revolves around the increasing debt accumulated from loans managed by debt collection companies and its impact on borrowers. The government seeks to find a balance between protecting borrowers and ensuring the stability of the financial system. The Finance Minister stressed the need for careful action, given that Cyprus is under observation by international organizations. The investigation of the issue continues with the aim of finding sustainable solutions.