Bounced checks in Cyprus reach alarming levels

The Central Bank of Cyprus (CBC) has raised concerns as the number of bounced checks continues to surge, reaching a total of 36 in August 2023, with a combined value of €78,108.

According to a report released this week, these checks were issued by 23 individuals, including 7 legal entities and 16 individuals, all of whom have been added to the preliminary list of the Central Information Repository (CIR) for bounced checks maintained by the CBC.

The report showed that during the period from January to August 2023, a total of 269 bounced checks, amounting to €693,918, involving 153 individuals (80 legal entities and 73 individuals), were registered in the preliminary list of the CIR.

This marks a significant increase from the same period last year when 316 bounced checks, totaling €1,079,534, were recorded.

Furthermore, the CBC’s data reveals that as of August 2023, 14 individuals have been added to the CIR, with 4 of them being legal entities, 5 individuals, and 5 natural persons controlling legal entities.

During the first eight months of the year, a total of 193 individuals (including 31 individuals) were registered in the CIR, compared to 155 individuals during the same period in 2022, highlighting a worrying trend in bounced checks within the Cyprus financial system.

The CBC is closely monitoring the situation and has urged individuals and businesses to exercise financial prudence to avoid contributing to this growing issue.