NEW GOVERNMENT DISY-DIKO ALLIANCE IN PARLIAMENT FOR FORECLOSURES - WHICH PROPOSALS PASS AND WHICH DO NOT - Filenews 18/3 by Eleftheria Paizanou
Continuation of the alliance made by the Government with DISY and DIKO for the approval of the tax reform, will be given, as everything shows, on the issue of foreclosures. Something that was also evident during yesterday's meeting that the Minister of Finance Makis Keravnos had with the president of DISY Annita Dimitriou.
The public position of Mrs. Dimitriou was also characteristic, who agreed with the positions of the Minister of Finance, who stated that social policy is exercised by the state. As the president of DISY said, they cannot risk the stability of the economy and the financial sector, pointing out that the legal framework for foreclosures should be modernized in the right way.
During the meeting, DISY put before the Minister of Finance the reinstatement of the Rent Against Instalment plan.
DISY and DIKO seem to cooperate to promote the proposals of the two parties. With the proposal of DISY, the guarantors are shielded, and with the proposal of DIKO, special judges will (may) be appointed by the Supreme Court for the amount of the loan, the debit balance, the abusive clauses, etc.
With the alliance of the two parties, the two proposals are approved. It is worth noting that the DISY bill is co-signed by EDEK, DIPA and independent MPs, so its passage is locked. It has not been clarified, however, whether the Government accepts the two law proposals, as in some places legal and constitutional issues seem to be identified. Also, the Central Bank, the Association of Banks and the credit acquiring companies have disagreed. It is noted that the Judicial Service, which is a key "player" in the implementation of the proposal for special judges on loan and foreclosure issues, has expressed its disagreement with DIKO's proposal.
They paved the way for cooperation
DISY and DIKO have paved the way for cooperation and tomorrow, Thursday, at the extraordinary session of the parliamentary Finance Committee, it is expected that they will open their cards for their intentions.
The new DISY-DIKO alliance is likely to cause new reactions in the other parties, which want their own legislative proposals to be brought to the Legislative Body, before the self-dissolution of Parliament in April.
Tomorrow's meeting, although originally scheduled to be held behind closed doors, will eventually take place normally in the presence of the Minister of Finance and the Governor of the Central Bank. The two officials will be asked to take a position on the DISY-DIKO formula.
Keravnou's "No"
Yesterday, the Minister of Finance Makis Keravnos clarified that at this time horizontal issues of foreclosures and their freezing should not be discussed. After the end of the meeting with DISY, he noted that the decisions to be taken must be reasonable and not create more problems, as, as he indicated, Cyprus is being monitored by the rating agencies, the European Union, the IMF, as well as other institutions. He reiterated that the legal framework of the Financial Commissioner should be strengthened, so that the problems can be resolved without endangering the Cypriot economy.
In the Legal Service, the bills
Yesterday, the Ministry of Finance forwarded to the Legal Service for legislative review the two bills that provide for a new mechanism for verifying the borrower's debt but also for determining the method of repayment. The bills strengthen the existing procedures of the Financial Out-of-Court Dispute Resolution Body, involve insolvency counsellors in the process and, at the same time, gain borrowers additional time to use the tools at their disposal.
The day before yesterday, the Minister of Finance informed the Council of Ministers about the government's plans. The bills provide for an upgrade of the debt confirmation mechanism of the Out-of-Court Financial Dispute Resolution Body for debt restructuring. The borrower will be given the opportunity to appeal to the Commissioner earlier for the confirmation of the debt and specifically as soon as they receive the type "I" letter instead of the "IA" letter as is currently the case.
It is worth noting that when the debtor appeals to the Commissioner for the confirmation of the debt, if the two parties do not reach an agreement on how to restructure or repay the debt, he will be able to turn to an insolvency counsellor to draw up a personal repayment plan.
With the second bill, the decisions of the Financial Commissioner for financial disputes up to €20,000 will become binding. The Government believes that this proposal will address the essence of the issue, as it will benefit both creditors and debtors. However, it does not seem that the bills will be submitted to the Parliament before its self-dissolution, which causes reactions in parties, which accuse the Government of long delay.
