Filenews 1 November 2023
The Association of Cyprus Banks announced the extension of the period of suspension of foreclosures concerning primary residences with a current value of up to €350,000 until the end of the year, following a meeting on Wednesday morning with the President of the Republic, Nikos Christodoulides, at the Presidential Palace, with the participation of the Minister of Finance, Makis Keravnos.
As stated after the meeting, the spokesperson of the Association of Banks, Andreas Kostouris, the member banks of the Association are extending the suspension of foreclosures that was in force from July 5, 2023, until December 31, 2023.
This decision, as he said, aims to give the necessary time, both to the Government and the Parliament, but also to the banks themselves that are part of the public consultation, to finally settle the framework of foreclosures.
At the same time, he noted that as they told the Government, this is the last time that banks proceed with such a move, considering that there should be a final settlement of the issue of foreclosures.
"We share our orientation with the state and especially the government for social sensitivity, for respect for vulnerable groups of borrowers. At the same time, with zero tolerance for strategic defaulters and with a faithful orientation to immediate, effective and effective implementation of a framework governing foreclosure procedures," he said.
Asked about the risks involved in this decision, but also whether the "Rent for Instalment" plan will be affected, Mr. Kostouris said that the Association is in constant and substantial communication with the Ministry so that it can be implemented in the best possible way.
He stressed that there is always a danger from suspensions, it is something against the principles of the Association, something they underline in the last four years, as he said, that Parliament proceeds with suspensions of foreclosures.
"But we also consider it to be a substantial gesture of goodwill to conclude the dialogue on the issue of foreclosures," he said.
Finally, he welcomed the initiative of the President of the Republic, who, as he said, has been looking very closely at the issue together with the Minister of Finance in recent weeks. The meeting with both the President and the Finance Minister was arranged within a few hours after the expiration of the previous extension, he said.
He added that there is a common orientation with the Government for financial stability and economic growth but also for social welfare. This, as he said, is the message they keep from today's meeting. He said they agree on them and want to work for stability in the legal framework to achieve the rest.
