The Famagusta District Local Government Organisation (EOAA) has succeeded in reducing outstanding sewerage fee debts by €12.6 million through an intensive debt collection campaign implemented over the past two and a half years.
When the organisation assumed its responsibilities on 1 July 2024, it inherited unpaid sewerage-related debts totalling €26 million. By 22 October 2026, the outstanding balance had been reduced to €13.4 million.
The reduction has been attributed to increased pressure on debtors, particularly large-scale debtors, through warning notices, repayment arrangements and legal proceedings.
Unlike sewerage charges, the EOAA did not inherit any outstanding water supply debts.
The "name and shame" warning
A key turning point came during the second half of 2025, when the EOAA board warned that it would publish the names of major debtors considered strategic non-payers.
The warning produced an immediate response from debtors.
Among the measures adopted:
- On 16 September 2025, the board approved legal action to recover debts.
- On 4 December 2025, it decided to proceed with the publication of a list of major debtors in accordance with existing legislation.
- Between December 2025 and January 2026, warning letters were sent to debtors owing more than €50,000.
- On 22 April 2026, 34 cases were referred to law firms for legal action.
- A further four cases were referred on 12 June 2026.
- On 7 July 2026, 140 warning letters were issued to debtors owing more than €10,000.
- On 6 October 2026, the organisation conducted a financial review of all debts exceeding €10,000.
Repayment agreements
The EOAA maintains two separate debt registers:
- Debts exceeding €50,000
- Debts between €10,000 and €50,000
Together they contain 214 accounts with total outstanding debts of €10,995,871, covering sewerage and stormwater charges owed up to 2025.
To facilitate recovery, the organisation has agreed 26 repayment arrangements worth €2,470,776.
These agreements include instalments already paid, with only the remaining balance still outstanding.
Officials said the arrangements provide debtors with a structured way to settle liabilities while allowing the organisation to recover long-overdue funds.
The 43 biggest debtors
Particular attention has been focused on 43 major debtors, primarily hotel operators and property developers, inherited from the former sewerage boards of Paralimni and Ayia Napa.
As of 12 July 2024, these debtors collectively owed €9,502,392, with each individual debt exceeding €90,500.
Since then:
- €4,426,654 (46.6%) has been collected.
- €1,215,968 (12.8%) is covered by six repayment agreements.
- €3,859,768 (40.6%) remains outstanding without any settlement agreement.
Of the unpaid amount, €1,559,076 relates to eight debtors who have not responded.
"We have ended up acting as bankers for certain large businessmen," EOAA President Yiannis Karousos told Politis.
He confirmed that legal action has been initiated against the eight major debtors and insisted that the organisation would not lose "a single euro".
Legislative proposals targeting chronic debtors
In a letter sent on 29 September 2026 to Interior Minister Constantinos Ioannou, Karousos proposed two legislative changes aimed at strengthening the collection powers of district local government organisations.
The first proposal would allow organisations to publish annually the names of companies with overdue debts that have remained unpaid for more than four years.
In effect, it would formally introduce a "name and shame" mechanism.
The second proposal would allow organisations to suspend consideration of planning and building permit applications where outstanding debts are linked to the property concerned or directly connected to the requested service.
In both cases, debtors would first receive written notification and be given the opportunity to settle or restructure their debts before penalties are applied.
Permit restrictions already being applied
Karousos said he has already begun implementing elements of the second proposal in practice.
Under his instructions, applicants seeking planning or building permits must provide confirmation that they do not owe money to the organisation before their applications can be processed.
"Someone cannot apply for new permits if they do not provide confirmation that they owe nothing to the organisation," he said.
Collections rise sharply
According to EOAA data, intensified collection efforts have significantly improved recovery rates.
Collections of old debts increased by 86% in 2026 compared with the whole of 2025, reflecting the impact of legal action, repayment agreements and increased pressure on delinquent debtors.
The organisation's next challenge, according to Karousos, is to maintain this momentum and secure payment from the remaining large debtors who continue to ignore their obligations.
