Question: We would like to know how a non-resident company can apply for credit (between $2 and $70 million) and which Cyprus banks give corporate credit to non-residents?
Answer: Thank you for your question. Most of the major Cyprus banks easily give mortgage to non-resident individuals; however, in our experience, lending to non-resident companies is somewhat more difficult and will require proportionally more time and effort in presenting you request and convincing the bank.
First of all, the bigger your loan request is, the bigger the bank should be. There are regulatory requirements by the Cyprus Central Bank (namely, Basel II) that limit the lending size of banks and if you approach a small bank, you will be refused not because of your request but because of the banks inability to meet its own requirements. For a loan of over €20 million, your choice is: Bank of Cyprus, Marfin Popular bank and Hellenic Bank. For smaller loan amounts, you will have more choice, which may include: USB, Alpha Bank, Pireaus, Sociate Generale and Eurobank.
To circumvent the limits of lending, it is not uncommon for banks to collectively provide a credit in the form of syndicated loan. This is how the new €600 million Cyprus International Airport was build.
Second, the purpose of the loan, the source of repayments and the collateral (security) will play major role in determining if credit will be granted to your company. They will also determine what type of credit is most suitable: corporate loan, structured finance, leasing, overdraft etc. and dictate the elements of the credit agreement.