News Local Bank guarantee requirement for foreign workers 'to be scrapped'

Bank guarantee requirement for foreign workers ‘to be scrapped’

The Interior Ministry wants to  abolish rules requiring employers of third country nationals to take out a  bank guarantee,  Phileleftheros reported on Wednesday.

It said the move will come as a relief to employers who have up to €850 per employee blocked in their bank accounts to cover potential repatriation costs.

Interior Minister Constantinos Petrides told the newspaper that an amendment to the law abolishing the requirement for a bank guarantee has been sent to the legal service of the Republic for review.

Petrides noted that among those required to obtain bank guarantees were the elderly and the disabled whose only income is their pension and who have difficulty raising the funds.

The minister said he had discussed the issue with representatives of associations for the elderly who agreed the guarantee should be scrapped.

This is a bad practice which renders hostage thousands of people, many of them vulnerable. A number are required to take out bank guarantees two or three times, he added.

His proposal is to scrap the requirement for guarantees and release existing ones.

Last year, guarantees of €74,000 were released. The immigration department, which has reserves of  €4m from bank guarantees, last year cashed in €300,000.

Phileleftheros said that employers will still be liable for repatriation costs of their employees and should they be unable to do so, there is an EU fund to cover such repatriations.

Current procedures to release a bank guarantee are bureaucratic and may take eight to 10 months.

 

 

Top Stories

Cypriots allowed entry to UK without quarantine as of today

Travellers from around 70 countries and British overseas territories may as of today enter the UK without having to quarantine for 14 days, the...

MoH issues revised instructions for use of gloves

The Health Ministry issued on Friday revised instructions for the use of gloves as per the guidelines of the European Centre for Disease Prevention...

Italy likely to extend state of emergency due to coronavirus crisis – PM

Italy will likely extend a state of emergency beyond its current deadline of July 31 due to the new coronavirus crisis, Italian Prime Minister...

2.2 divorces per 1,000 people in Cyprus, latest Eurostat data shows

Over the last decades, more and more people have been getting a divorce in the EU, according to a new report published on Friday...

EU population down by 12.8% in 2019, increase by 13.7% in Cyprus

Cyprus recorded the third-highest population increase in the EU in 2019, a new report by Eurostat published on Friday indicates. On 1 January 2020, the...

Taste

Moungra

Moungra is a traditional Cypriot mezze which consists in cauliflower pickled in fermented bread dough and typically served as an appetizer or meze. It...

Cheesy Eggplant Rolls

Ingredients 4 Eggplants 2 tbsp olive oil 1 chopped onion, 2 grated carrots 1 garlic clove (sliced) ¾ of the cup finely chopped canned tomato, ½ ts sugar 1 ts oregano 2 tbsp...

Black eyed peas with chard (Louvia me laxana)

Ingredients: 2 cups black eyed peas small lemon (juice) + 1 tsp lemon zest 1 bunch Cypriot chards olive oil & lemon for serving salt & pepper Method: Step 1 Put the...

How to make triandafillo ice cream, by UK Cypriot chef Loulla Astin

  Just in time for the scorching heat, UK Cypriot chef Loulla Astin has shared her recipe for refreshing triantafillo ice cream -- or as...