Insider Economy Lobbying to thwart new foreclosure legislation

Lobbying to thwart new foreclosure legislation

Twenty four hours before parliament begins debate on proposed legislation designed to slow down foreclosures in Cyprus and banks have begun lobbying to thwart such a development.

The five draft bills to come under discussion before the House Finance Committee on Thursday were sent by opposition parties Diko, the Greens and the Solidarity Movement a couple of weeks ago.

Commercial banks – and not only – strongly believe that if the law is amended financial stability and, by extension, the economy as a whole will be affected.

Bank representatives have already met with party officials from ruling Disy, main opposition Akel and centre Diko which is behind the amended bills. And they plan to meet with the leadership of all other parties supporting the proposed changes.

Banking sector insiders told Phileleftheros that if the foreclosures bill is amended, international rating firms will immediately downgrade the island’s economy.

And the European Central Bank will negatively review guarantees on borrowers’ loans, while problems will also arise with forecasts by credit institutions. In addition, there is going to be a risk to the capital adequacy and profitability of banks.

One insider also said that both Central Bank of Cyprus and the Ministry of Finance are looking into the repercussions on the island’s economy the proposed amendments will have, if approved.

The proposed bills have yet to get the required majority.


Read more:



Top Stories

160 new cases of COVID-19 on Friday

The Health Ministry announced 160 new COVID-19 cases on 23 October, out of 4,327 laboratory tests, taking confirmed infections to 3,314. The break-down of new...

Health Ministry insists there is confirmed case among American Center staff

The Health Ministry replied to the denial of the American Medical Center regarding a confirmed case among its staff. In an announcement the Ministry noted...

Health Ministry replies to accusation about delay of the tracing unit

The tracing unit contacts the persons who have tested positive to COVID-19 as soon as it is informed by the relevant laboratories and the...

Professor of Microbiology concerned about asymptomatic patients

Dr Petros Karayiannis, Professor of Microbiology/Molecular Virology at the University of Nicosia Medical School, has expressed concern over the great number of private hospitals,...

30-year-old missing for seven months (PHOTO)

Police are looking for 30-year old NAKITA YASMEEN from the United Kingdom, whose traces have been lost since March 2020. Yasmeen’s disappearance was today...


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...


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...