Insider Economy Loan sale law to cover all loans

Loan sale law to cover all loans

One of the most discussed issues during the implementation of Cyprus economic adjustment programme was legislation on the sale of loans which after heated debate and intense consultations was approved by the House of Representatives in 2015.

The law set restrictions and criteria as regards loans with outstanding sums below 1 million euro.

For example, under the law the seller had to notify the borrower of his intention to sell and the borrower had the right to submit a proposal to buy his loan within 45 days.

The Finance Ministry has prepared an amendment to the law so that it covers all loans and not just those  under 1 million euro.

The bill has been sent to the European Central Bank for review which overall was positive.

The amendments propose exceptions in the implementation of the basic law as regards transactions covered by foreign law, the 2018 law on the securitisation of loans and the 1997 law on the transfer of banking operations and collateral.

Moreover, exceptions in place currently will be abolished. These include: if the loan is granted to an individual who is not a permanent resident; if they relate to operations or investments outside Cyprus and if they are guaranteed with property outside Cyprus.

Another proposed change concerns those allowed to sell loans. Currently only those with permission of the Central Bank can do so. The draft bill scraps this requirement saying that buyers can buy credit facilities from anyone.

The bill also sets up a licensing framework by the Central Bank for manager of credit facilities, placing it under its supervision mandate.

Top Stories

162 new cases, five deaths announced on Monday

The Health Ministry announced the death of five persons due to COVID-19. This raises the death toll from the virus in Cyprus to 175,...

Where to get antigen rapid tests on Tuesday

The Health Ministry announced the following antigen rapid test sites for Tuesday, 19 January 2021: LIMASSOL Apostle Loucas Church, Agios Athanasios 08:30-16:30 Agios Stylianos Church, Linopetra 08:30-16:30 Cultural...

Searches for 70 year old woman missing at sea suspended due to bad weather

Searches to find a 70 year old woman missing off the Phiikoudes beach in Larnaca have been suspended due to extremely bad weather conditions...

Tourist arrivals plunge by 84% in 2020 in one of Cyprus’ worst tourist seasons due to Covid

Tourist arrivals in Cyprus reached a mere 631,609 plunging by 84.1% year on year in one of the worst ever season for Cyprus’ tourist...

Germany demands release of Kremlin critic Navalny

Germany on Monday demanded the release of Kremlin critic Alexei Navalny, detained on Sunday on his return to Russia, and said it would discuss...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...