InsiderEconomyCyprus parties want to find right balance on foreclosures bill

Cyprus parties want to find right balance on foreclosures bill

The right balance has to be found among opposition parties in Cyprus, the government and the Central Bank on the thorny issue of the foreclosures bill, according to analysts.

The parties which have voted in amendments to the island’s foreclosures bill that basically slow down the process now have only three days before taking face-saving decisions.

On Monday, parliament decided to postpone voting on the vetoing by President Nicos Anastasiades of the amended bill which was tabled some two weeks ago.

The vote is now set to take place on Friday with the parties saying they wanted to introduce additional safeguards for homeowners with mortgages they are unable to service. As well as to restore the negotiating balance between lenders and borrowers.

Behind the scene talks seem to be intense between the parties and officials of the finance ministry and of the Central Bank of Cyprus with all parties being aware of the negative repercussions on the economy this uncertainty brings.

The compromise solution seems to be in the proposal tabled by centre Diko which gives more power to the Financial Commissioner.

In the meantime, Central Bank Governor Constantinos Herodotou is meetings with all opposition parties – big and small – even though none seems willing to reveal its intentions before Friday.

An extraordinary meeting of the House Finance Committee is taking place today with the participation of the Attorney General, the Minister of Finance, the Central Bank Governor and the Financial Commissioner.

Last night, Diko leader Nicolas Papadopoulos told Phileleftheros that their proposal provides for a better borrower protection procedure that will not cause delays. And that the party realises that this is a compromise.


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