Filenews 26 September 2023 - by Eleftherias Paizanou
Even one cent owed to the state, banks and credit acquiring companies will have one's name recorded in the register of credit and other liabilities so that the creditworthiness of each debtor can be assessed.
The Ministry of Finance promotes targeted policies for the prevention and management of private debt, in the context of the implementation of the National Recovery Plan. The Republic will instruct the German state-owned company PD to prepare an action plan.
The aim of the plan is to improve the authorities' capacity to design and implement targeted policies to prevent and manage the stock of private debt.
The advisors of the German state-owned company will give their light to the Cypriot authorities for the creation of a liabilities monitoring register, which will cover the amounts of debts of natural and legal persons to the State and to credit institutions and credit acquiring companies.
The issue came to light yesterday in the parliamentary Committee on Finance, on the occasion of the unanimous release of a budget of €67,950, which concerns the purchase of consulting and legal advisor services related to the debt monitoring register.
According to a note sent to Parliament, the action plan will include the design and development of the register of credit obligations to create creditworthiness points for natural and legal persons.
It also includes the development of a credit rating system for natural and legal persons, as well as linking the system to other credit rating agencies.
The project will be implemented in three phases:
– The 1st phase provides for the collection and analysis of obligations of persons towards the state, at central government level (eg income tax, social insurance, registrar of companies, transport department, land registry, etc.).
– Phase 2 provides for the addition of individuals' obligations towards credit institutions and credit acquiring companies (extraction of data from the Artemıs database).
– During the 3rd phase of the project, the obligations of individuals towards local authorities (eg municipalities and semi-governmental organizations) will be added.
Before the parliamentary committee on finance, a spokesman for the Ministry of Finance said that the first contract will be awarded to PD, which will prepare the relevant action plan, at a cost of €62 thousand.
As he noted, PD is the internal consulting firm of the German state, with clients and shareholders exclusively the federal state and community governments, as well as other public organizations, including the Republic of Cyprus.
The second agreement concerns the services of legal advisors, who will analyze and resolve any legal issues that arise or may arise, in particular issues related to the protection of personal data, as well as for the preparation of the impact analysis for the purpose of compliance of the project with the General Data Protection Regulation and the relevant relevant legislation.
