Cyprus Mail 11 January 2022 - by Kyriacos Nicolaou
The house finance committee proposed on Monday an amendment seeking to remove the right of access by credit facility management companies to the Artemis database, which allows banks to determine a borrower’s creditworthiness, as well as to the land registry database, in cases of loan guarantors.
“The amendment ensures non-abuse of legislation to the detriment of guarantors, collateral providers and persons associated with borrowers, in order to encourage the provision of sustainable restructuring solutions,” a committee statement said.
The proposal was submitted by Greens deputy Stavros Papadouris, Dipa’s Alekos Trifonides and Elam’s Sotiris Ioannou.
The finance ministry representative stated that the main goal of the package of bills was to put a proper framework in place for the licensing and supervision of credit facility management companies by the Central Bank, as is done with credit redemption companies, but also for the protection of borrowers.
The representative added that the additional transparency prevented strategic defaults. Moreover, the finance ministry representative said that the amendment would make it harder for credit facility management companies to operate or even obtain a licence.
Akel MP Andreas Kafkalias said that “the government is trying to further crush borrowers and to further strengthen the position of the banks and their satellites with these bills,” which the party would vote against.
