Warnings over new foreclosure legislation

A total of five bills concerning a new foreclosure legislation are expected to be discussed on Thursday at a meeting of the House of Representatives Finance Committee.

The proposed legislation is aimed at delaying the foreclosure procedures and according to Kathimerini sources the Central Bank, government and Banks are sounding the alarm, warning that the credibility of Cyprus to fulfil its reform obligations will lead to a downgrade of the Cyprus economy and impede foreign direct investments.

Financial analysts see the issue of decelerating the process of dealing with non-performing loans as a major mistake arguing that international firms that purchase and consequently deal with non-performing portfolio recovery will no longer trust the Cypriot system to provide a level playing field.

DIKO MP Votsis said that the philosophy of the proposed changes is to urge the banks to focus on restructuring bad loans instead of foreclosures.

The amendments were tabled by DIKO, the Greens, Solidarity Movement and Citizens Alliance.