Personal Guarantees In Cyprus – What The Courts Say

Supreme Court of Cyprus: Personal guarantees remain binding, even in cases of alleged psychological pressure (Ακολουθεί κείμενο στα Ελληνικά)

In a recent decision by the Supreme Court of Cyprus (Civil Appeal No. 37/2015), an appeal by a woman who had guaranteed loans for a company in which she was a member was dismissed. She claimed she had signed the guarantees under pressure from her husband and the bank. The bank, A. B. Cyprus Ltd, had already secured a judgment against the company and other guarantors and pursued the appellant (i.e. the person who filed the appeal) for the remaining debt, also seeking the forced sale of her mortgaged properties.

The appellant argued that her signatures on the personal guarantees and mortgages were the result of emotional pressure, coercion, and a lack of independent legal advice. She also filed a counterclaim, seeking to annul the guarantees on those grounds.