Parliament votes against two bills on borrowers’ rights

10:13 - 14 July 2023

Economy

The Cyprus Parliament has voted against two non-government bills on borrowers’ rights, which the government and the Central Bank had warned could threaten the stability of the financial sector.

The 13 July session was the last plenary dealing with pending legislative matters before summer recess with the session beginning at 11am and ending around 9pm with a break around lunchtime. The extensive debate about the bills on foreclosures and NPLs took place after 2pm.

The first bill was tabled by AKEL, ELAM, DEPA, EDEK, the Cyprus Greens and three DIKO MPs. It would give borrowers the right to obtain a court order setting aside ongoing foreclosure proceedings against their property, on the grounds of unfair contract clauses and banks’ overcharging.

The vote came to 27-27. The second bill, also rejected by the majority of MPs, was tabled by EDEK on selling a property at the estimated price on the date of signing a loan agreement.

Parliamentarians also decided to postpone voting on a government bill providing for the creation of special-jurisdiction courts on foreclosure disputes, concerning mortgaged primary residences of a value of up to €350,000.

The government commented late last night on the voting outcome.

Government Spokesperson Constantinos Letymbiotis posted on his Twitter account that with the defeat of the bill that would have led to a mass suspension of foreclosures, a bulwark of responsibility was raised against populism and bad practices of the past.

He also said that the government presented a package of measures and has expressed its willingness to discuss any beneficial proposal that has been submitted.

(Source: CNA)

Parliament votes against two bills on borrowers’ rights

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