in-cyprus 7 July 2023 - by Annie Charalambous
The foreclosures ‘war’ in Cyprus between banks and loan takers remains open but lawmakers on Thursday did vote in two proposals that are in favour of debtors.
The first legislative proposal provides for the exchange of property for debt at the market value of the property rather than the price of a forced sale.
And the second one obliges banks to provide more information to debtors facing repossession on their primary residence.
However, the House plenum postponed voting on the controversial bill that would have allowed debtors to set aside repossessions proceedings with a court order.
Also postponed was the proposal for the sale of property at the value it had at the time of signing the credit facility agreement.
However, the government believes that debtors who are consistent with their loan re-payments have nothing to fear.
Finance Minister Makis Keravnos went as far as to recently send a letter to the House President stressing the newly approved bill on special jurisdiction for foreclosures in district courts.
He also referred to the suspension of foreclosures of main residences worth up to €350,000 till the end of October – something that was accepted by commercial banks and credit redemption companies.
He also noted that additional government measures are in the pipeline aiming to protect economically vulnerable groups of society.
