The Movement Against Foreclosures intends to proceed with a reference to the European Union, in the event that the Supreme Constitutional Court deems the law on unfair clauses, which was mentioned by the President of the Republic, unconstitutional.
Speaking to KYPE, Eugenia Moisseos, a member of the Movement, said that AKEL's proposal for a law, which was passed by the Plenary Session of the Parliament as the "On Transfer and Mortgages, amending law number 2 of 2026", is in line with the European Directive 93/13.
She explained that the law on unfair terms ensured an automatic suspension of the sale until the trial of the case, in the event that a borrower goes to court invoking unfair terms. According to Ms. Moisseos, Cyprus is in an infringement procedure on the basis of this Directive.
"If the European directive is unconstitutional, we have a big issue. European directives are not à la carte," she said.
Asked to comment on the reference of the President of the Republic to the laws passed on foreclosures, Ms. Moisseos said that "we did not expect anything else", noting that any substantial protection for borrowers is considered unconstitutional, with invocation of the markets and financial stability
Eugenia Moisseos pointed out that President Christodoulidis signed the proposals of ELAM and DIKO, which he described as "purely procedural", saying that they do not essentially protect the borrower or the primary residence.
"It is not about the protection of borrowers," she said.
Ms. Moisseos also argued that Cyprus is the only country where the sale takes place first and then the case is heard. She wondered what will be the practical result of any vindication of the borrower by the court, if his home has already been sold.
"The sale is taking place and people are still in debt, the rest is not written off," she added.
At the same time, she referred to a 1964 law, which she described as the "most democratic foreclosure law in the whole of Europe". As she said, this law provides that, in the event of a house being sold, the money passes into the hands of the Director of the Land Registry, who first ensures housing for the family and then, with the remaining amount, the loan is repaid.
"This law, which exists and is not being used, they are going to 'modernize'," she said.
Ms. Moisseos noted that society should not treat housing as a number on a balance sheet, underlining that housing is a universal right.
Asked what is expected from the trial at the Supreme Constitutional Court, she said that, knowing the situations, she thinks she knows what will happen. She added that the Movement will contact other bodies that would like to participate and will proceed with a report to the EU, if the law is deemed unconstitutional.
