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20 July, 2024
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Cypriot economy on the brink, says Finance Minister

Potential downgrades and crisis loom If foreclosure system is upended, cautionary warning issued


During his address to the House of Representatives and following his presentation to the Parliamentary Finance Committee on the government's comprehensive package of seven measures for addressing foreclosure issues, Finance Minister Makis Keravnos expressed concerns over potential unpleasant consequences and downgrades to the Cypriot economy if the existing foreclosure system is destabilized or overturned. He emphasized that any resulting crisis would ultimately be borne by the average citizen and worker.

The government acknowledges the challenges faced by vulnerable groups and has implemented measures aimed at providing relief without compromising the overall foreclosure framework. Minister Kerynos stated that the government's comprehensive package of measures offers solutions and addresses current problems, such as delays in decision-making and concerns regarding overcharging and abusive clauses, through the proposed bill.

The Parliamentary Finance Committee convened today to discuss the controversial bill co-signed by AKEL, ELAM, EDEK, DIPA, Ecologists, and DIKO MPs. This bill grants mortgage debtors and other concerned parties the right to seek court intervention to suspend property sale procedures under certain circumstances, such as disputing the amount due or alleging unfair clauses in loan or mortgage contracts.

Minister Kerynos also highlighted that despite the positive assessment of the Cypriot economy by international institutions such as the International Monetary Fund, the European Stability Mechanism, and the post-memorandum audit conducted by the Troika, imbalances persist. These imbalances include high public debt, deficits, and trade imbalances resulting from the ongoing conflict, such as Russia's invasion of Ukraine, which has disrupted the supply chain of goods.

Cyprus  |  economy  |  foreclosure  |  divestment

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