With the visible risk that some legislative regulations on foreclosures will be referred back to Parliament, due to issues of unconstitutionality, 21 pieces of legislation are being brought before the Plenary on Monday that bring about changes in the legal framework for foreclosures, guarantors, the Out-of-Court Settlement of Financial Disputes Body and the insolvency framework.
Yesterday, the members of the parliamentary Finance Committee concluded the debate and decided which of the proposed legislation will be withdrawn, which will be sent to the new Parliament and which will be put to a vote on Monday.
The two government bills to upgrade the debt confirmation mechanism by the Financial Commissioner will be sent to the Plenary. At the same time, binding action is introduced in the Commissioner's decisions, but up to €20,000, for complaints against financial companies.
In addition, borrowers will be able to apply to the Commissioner for debt confirmation earlier, when they receive the "I" type letter, instead of the "IA" press letter. Financial Commissioner Valentina Georgiadou disagreed with the bill, arguing that it weakens the institution of the Agency with the right of creditors to go to court against a decision of the Commissioner, even for the merits of the case.
They are preparing amendments
ELAM and DIPA are preparing amendments to the bills. ELAM will propose that the Commissioner's decisions be binding and that cases that have become final in court should be excluded from recourse to the Agency.
DIPA will propose that the binding nature of the Commissioner's decisions should concern cases up to €50,000.
The law proposals
The following 19 of the 26 law proposals will be put to a vote in the Plenary Session of the Parliament:
In the meantime, 19 of the 26 law proposals will be put to the Plenary:
– A proposal for a EDEK law, which determines that, in the event of the sale of the primary debtor's property for the purpose of satisfying a creditor's claim, the guarantors in the contract are either released from the liability arising from the concluded contract for them, or become liable to each other in an equal amount, if the primary debtor is bankrupt or objectively unable to fulfil his obligations.
– A proposal for an AKEL law, which will restore the right of mortgage debtors to access justice in specific cases, such as the invocation of abusive clauses in loan or mortgage contracts as a reason for suspending property sale procedures.
– Proposal for a law by EDEK and Kostis Efstathiou to exclude from sales a main residence worth €350,000, business premises worth €150,000, real estate used for agricultural purposes worth €200,000. It covers primary debtors and guarantors. Debtors will be able to apply to the court for a prohibition order to suspend the sale
– A proposal for an ELAM law by which a debtor will be able to go to court and set aside a notice for the examination of unfair clauses, determine an amount in cases of primary residence or main business.
– Proposal for a law by Koulias, Orfanidis and Mylonas of DIKO, as well as EDEK, with which a debtor will be able to appeal to a competent court and submit an application for the issuance of a special prohibition decree to suspend the intended sale of the mortgaged property.
– A proposal for a law on Ecologists, which provides for the removal of distortions that create artificial obstacles for insolvent persons to be included in the framework.
– A proposal for a law by Ecologists, ELAM, EDEK, DIPA for the binding nature of the decisions of the Financial Commissioner.
– ELAM proposal prohibiting creditors from demanding additional collateral from the borrower, when the loan amount is more than covered by the mortgage of the property.
– Proposal for a law by DIKO, EDEK, DIPA which introduces new regulations according to which the eligible debtor may file an appeal with the District Court for setting aside the notice of sale within twenty-one days from the date of receipt of the notice
– Proposal of AKEL and Ecologists for access to justice for abusive clauses and the amount of debt
– A proposal for a law by AKEL, Koulias, Mylonas, Orphanidis and DIPA which provides that after the sale of a mortgaged property, the product collected from the sale or auction does not cover the amount of the mortgage debt, plus interest, the balance of the debt to be written off.
– The same rapporteurs propose that banks should not impose additional interest in the event that the amount of credit facility due, including interest, amounts to twice the original debt. The Ministry agrees to concern housing loans up to €350,000 and which will be concluded after the adoption of the law.
– The proposals of the DISY, EDEK and DIPA law for the shielding of guarantors, DIKO for the appointment of special judges and DIPA for freezing foreclosures are also included.
The Ministry of Finance disagrees with the majority of the proposals.
