Filenews 5 July 2023 - by Eleftheria Paizanou
The "informal" freeze on foreclosures of primary residences worth up to €350,000 may be the Government's response to the efforts made by Parliament to change the legal framework for foreclosures.
According to information provided by "F", yesterday afternoon the President of the Republic, Nikos Christodoulides, met with the heads of bank associations and credit acquiring companies in an effort to come up with a formula that on the one hand will protect borrowers and on the other hand will not cause repercussions on the economy, the banking system and will prevent negative messages from being sent to foreign firms.
The Government, being "in the two straits" due to the majority formed by the controversial bill of AKEL, ELAM, EDEK, DPA, Ecologists, the three DIKO MPs and the two independent MPs, with which borrowers will go to court and at the same time secure a decree suspending the sale of housing, decided to proceed with important moves.
Specifically, President Christodoulides called on creditors to provide a safety net until October or the end of the year to vulnerable borrowers, until the measures he promotes are implemented.
Today, both banks and credit acquiring companies are expected to make announcements in relation to which they will commit to setting aside foreclosures for primary residences worth up to €350,000 until October. According to other information, the moratorium on home foreclosures could be extended until the end of the year.
