Filenews 21 June 2022 - by Eleftheria Paizanos
The President of the Republic Nicos Anastasiades failed to convince the parties of the two bills that strengthen the legal framework for the management of non-performing loans and govern the licensing and operation of loan servicing companies, so as to unblock the second instalment, amounting to €85 million, from the Recovery Fund. The two bills are the last prerequisite for the second tranche and had to be approved at the end of December 2021, however, six months later their discussion continues.
During yesterday's meeting of the National Council, the opposition parties did not hide once again their concerns about the general issue of loan guarantors and loan servicing companies. And all this, despite the formula reached a few days ago by the Ministry of Finance with parties in parliament, in relation to the guarantors, which was accepted by Brussels. With the compromise, the access of the management companies to the data of the guarantors, to the databases of the Artemis system and the Cadastre, will be done only in cases where it is deemed necessary and after it has been documented.
The meeting of the National Council was also attended by the Minister of Finance, Konstantinos Petrides, and the General Director of the Development Directorate, Theodosis Tsiolas, who, as "F" is informed, expressed their surprise at the positions of the parties, since, as they said, they considered that the compromise solution found solved the problem.
Implementation of milestones
According to information provided by "F", President Anastasiades stressed to the leaders the need to implement the prerequisites within the timetables. At the same time, he informed that the European Commission accepted the change made to the bills in relation to the guarantors.
He also called for the promotion of the bills for the reform of the judiciary in the Plenum of the Parliament, stressing that Cyprus is one of the last countries in Europe in the delay in the administration of justice. For his part, the Minister of Finance said that few outstanding issues remained for the disbursement of €85 million. He also said that mortgage to rent is in the works, while the Estia Scheme is in place.
The Director General of the Directorate of Development referred to the pitfalls faced by the ministry, due to the delay in the implementation of the prerequisites. As he said, the issue is not the €85 million, but, he noted, the problem is that the Republic cannot submit any more requests even for the disbursement of the next tranches. He also said that with the bills the supervision of management companies will come under the Central Bank. He suggested that with the solution found on the issue of guarantors, he considered that the issue is over, stressing that some (parties) insist that loan management companies do not have access to the data of borrowers.
Only DISY committed to vote in favour of the controversial bills
At the meeting of the National Council, as "F" is informed, the president of DISY Averoff Neophytou assured that his party will vote in favour of the bills. The general secretary of AKEL, Stefanos Stefanou, suggested that there should be a new meeting to find consensual solutions. In a written statement, he suggested that all the previous years AKEL has been creative, even a leading one, in promoting reforms that really serve the Cypriot society.
The president of DIKO Nikolas Papadopoulos said that the problem is not the specific bills but the general behaviour of banks and loan management companies. In fact, it proposed a compromise proposal as a comprehensive package of measures. As we are informed, Mr. Papadopoulos suggested the establishment of a Special Court for divestments, something that EDEK has been insisting on for a long time. It also proposed the approval of the Central Bank's proposal for the suspension of divestments under specific conditions, as well as the amendment of the Law on Proof, in order to solve some problems of KEDIPES, in relation to Co-operation.
It is recalled that this controversial bill provides that loan management companies and non-credit institutions will have access to the books of banks, in order to facilitate the continuation of lawsuits against borrowers, something with which most parties strongly disagree, resulting in discussion for two years. ELAM President Christos Christou argued that the behaviour of management companies towards borrowers is unacceptable. EDEK President Marinos Sizopoulos noted that their reservations are the result of the arbitrariness of the banks, stressing that a package of measures should be prepared to correct the distortions. DIPA president Marios Karoyan said it would look to find a way to support the bills. As he said, a balance has to be found, as there are a lot of people who are suffering.
In an effort to find solutions that satisfy everyone, a new meeting of the leaders and economic staffs of the parties, chaired by the Minister of Finance, will follow the next ones.
