Cyprus Mail 2 August 2019 - article by George Psyllides
Parliament on Friday accepted a presidential veto to a bill amending the foreclosures law with potentially negative effects on banks and the economy and approved a compromise proposal designed to protect vulnerable borrowers.
The bill in question had been passed by opposition parties on July 12 who said they wanted to introduce additional safeguards for homeowners with mortgages they are unable to service and to restore the negotiating balance between lenders and borrowers.
The European Central Bank, the Cyprus Central Bank and the finance minister had strongly urged MPs not to weaken the foreclosures legislation, saying it would seriously impact the banking system
Ruling Disy supported a Diko compromise proposal that affords borrowers with bad debts the ability to seek recourse with the financial ombudsman who will decide whether a lender had violated the central bank’s code of ethics regarding loan restructuring.
If the ombudsman decides there is a violation, the borrower can then seek a court injunction halting the foreclosure procedure.
