Cyprus Parliament rejects bills on borrowers' rights

The Cyprus Parliament voted against two non-government bills regarding borrowers' rights on Thursday, disregarding warnings from the government and the Central Bank about potential threats to the stability of the financial sector.

This marked the final plenary session addressing pending legislative matters before the summer recess. The session commenced at 11:00 and concluded around 21:00, with a break around midday. The extensive debate on the foreclosure and non-performing loans (NPLs) bills took place after 14:00.

The initial bill, proposed by AKEL, ELAM, DEPA, EDEK, the Cyprus Greens, and three DIKO MPs, aimed to grant borrowers the right to obtain a court order halting ongoing foreclosure proceedings against their property. The grounds for seeking such an order included unfair contract clauses and overcharging by banks.

The vote resulted in a tie, with 27 in favor and 27 against. The majority of MPs also rejected the second bill, which was introduced by EDEK and focused on selling a property at the estimated price on the date of signing a loan agreement.

Furthermore, Parliamentarians decided to delay the voting on a government bill that would establish special-jurisdiction courts to address foreclosure disputes related to primary residences with a value of up to €350,000.

In response to the voting outcome, the government issued a statement late last night. Government Spokesperson Constantinos Letymbiotis took to Twitter, stating that the defeat of the bill that could have led to a widespread suspension of foreclosures demonstrated a commitment to responsibility and a rejection of past populist tendencies and improper practices.

Letymbiotis also emphasized that the government has put forth a comprehensive set of measures and remains open to discussing any advantageous proposals that have been submitted.