Filenews 28 July 2022 - by Eleftheria Paizanou
In sixty days, the Foreclosure Court will issue its decisions in relation to the applications and appeals that will be registered for the foreclosures and other financial disputes cases.
This provision is included in the bill being worked out by the Ministries of Finance and Justice, which creates a special jurisdiction at the level of the District Court, which will also examine cases with credit facilities between borrower and creditor, as well as for disputes in relation to securities. It is the second attempt the government will make on this bill, as the previous one was withdrawn last year, when the opposition parties, with the many amendments they had tabled, had changed its focus.
In addition, the Foreclosure Court was twice a prerequisite for important legislation to pass through the hurdle of parliament. The first case was in January 2021, when EDEK had set it as a prerequisite for the approval of the state budget for 2021. The second time was a few weeks ago, when the opposition parties demanded the political commitment of the government side, as well as an outline of the relevant bill, to give the green light to the two bills for loan servicing companies, which were the last prerequisite for the disbursement of the second tranche of €85 million from the Recovery Fund, which was implemented seven months late. However, the Foreclosure Court was a constant request of both the Central Bank and the banks, which consider that it will help to deal with many cases of foreclosures, as there will be a speedy adjudication of disputes that exist between borrowers and banks.
After the holidays the consultations
Sources from the two ministries told "F" that the preparation of the bill is continuing, which will give a great boost to the adjudication of financial disputes, for the benefit of all those affected. After the summer recess, the technocrats of the two ministries will consult with the Supreme Court and the Central Bank to give their views, before the final text of the bill is finalized. Subsequently, the bill will be sent for legislative scrutiny to the Legal Service and then submitted to the Parliament. The government's goal is for the bill to be forwarded to Parliament before the 2023 state budget is put up for approval, as some opposition parties will use it as a lever of pressure to give their positive vote.
The basic provisions of the bill
The special jurisdiction that will be created will examine disputes in relation to credit facilities between borrower and creditor. The Court shall, in addition to disputes relating to the debit balance of the credit facility, deal with any other dispute over credit facilities, guarantees and collateral. Therefore, it will also deal with disputes in relation to over-indebtedness and unfair terms. These arrangements will cover first-time debtors, guarantors and collateral providers, who have secured the loan they received the main residence, with an estimated value not exceeding €350,000. In addition, it will also examine disputes concerning the sale of mortgage property, which is collateral, as well as disputes regarding the securities of credit institutions acquired between 2008 and March 2013.
FACT
Judges ready
Six positions of judges have already been created to hear such cases, while the Supreme Court has appointed a number of Judges per province who have received training and will hear these disputes as a matter of priority. It should be mentioned that the bill, in addition to addressing the problems in the financial sector, will also contribute to the reform of the courts.
An initial briefing on the basic provisions of the bill had been made by the government to the members of the parliamentary Committee on Finance, in one of the sessions shortly before the adjournment of the Work of the House.
