NewsLocalNew government must present parliament with proposals on foreclosures issue by March...

New government must present parliament with proposals on foreclosures issue by March 27

The majority of parliamentary parties give the newly-elected government up until March 27 to present its proposals for a new legal framework on the hot issue of foreclosures. As well as proposed ways to tackle the island’s alarming problem of red loans, Philenews reports.

At the same time, during Monday’s closed-door session of the House Finance Committee MPs from main opposition Akel, centre DIPA and the Greens reportedly demanded that 13 legislative proposals on this issue that have long been tabled be discussed.

MPs from these parties also argued that due to the increase in interest rates, many borrowers are finding it difficult to make their repayments. And, as a result, there is a risk that at some point their loans will become non-performing.

MPs also said that they had received complaints from borrowers who could hardly pay back their loans as banks refused to accept restructuring.

Nonetheless, MPs from the other parties disagreed with the proposal to debate the 13 legislative proposals arguing that some are also devoid of substance since the purpose for which they were tabled has ceased to exist.

The same MPs also argued that some of the proposals face legal issues while the required scrutiny of their impact on the Cypriot economy has not been carried out. They also did not hide their concern about possible side effects and downgrades by international rating agencies.

Sources said the debate was heated with Committee members deciding to wait till the government’s positions are presented to them by Finance Minister Makis Keravnos on March 27.

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