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Ship mortgages over ships flying the Cyprus flag
According to the Merchant Shipping (Registration of Ships, Sales and Mortgages) Laws of 1963, as amended, which are the main statutes for all matters relating to the registration of ships and related transactions in the Register of Cyprus Ships, a mortgage against a ship flying the flag of Cyprus can be registered at any time after the completion of the vessel’s registration (provisional or permanent) in the Register of Cyprus Ships, or in the Special Book of Parallel Registration.
By a registered mortgage, the shipowner can secure a loan or other financial benefits, subject to the conditions agreed between the contracting parties, without the need for exchange control permission. The creation of a mortgage under Cypriot law is not allowed on vessels registered parallel-in in the Register of Cyprus Ships.