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Cyprus' Finance Ministry has expressed satisfaction with the parliament's approval of laws integral to the comprehensive package for managing Non-Performing Loans (NPLs) and the foreclosure framework.
The Ministry believes that the debate on foreclosure framework amendments has been exhausted, emphasizing the establishment of a balanced safety net without compromising effectiveness and stability. The new regulations focus on protecting primary residences valued up to €350,000, covering the majority of mortgages.
Borrowers can now turn to the Financial Ombudsman's office for loan restructuring, expediting dispute resolution and incentivizing out-of-court settlements. Priority is given to judicial resolutions concerning primary residences up to €350,000.
The Mortgage to Rent scheme addresses NPLs and ensures vulnerable borrowers remain in their homes. Amendments to the Law on Transfer and Mortgage of Real Estate promote transparency and fair treatment for borrowers in property exchange for debt cases, even during foreclosure procedures.
The Ministry commends the constructive approach of all involved parties and underscores the importance of effective regulation implementation.
[Information sourced from CNA]
