Insider Business SMEs to also be protected from bank clauses

SMEs to also be protected from bank clauses

The House Commerce Committee is reviewing fresh regulations providing for the extension of protection against abusive clauses of banks in cases of legal persons to also cover small to medium-sized enterprises (SMEs).

That’s why a new proposal on this which was submitted on Tuesday by Financial Ombudsman Pavlos Ioannou has replaced two bills drafted by socialist Edek’s Costis Efstathiou and Giorgos Perdikis of the Green Party.

Ruling Disy’s Commerce Committee chairman Andreas Kyprianou explained that the Ombudsman’s proposal which is to be debated before the House plenum on Friday provides for the protection clauses to be extended to companies of a particular size.

Under the new proposal, the protection provided by law to natural persons against unfair terms will get extended to legal persons as well. The proposal specifies that companies of a particular size, and in particular micro-companies, will be covered by law.

Specifically, the law will cover companies that meet two of the three criteria, that is they have a turnover of up to €2 million, employ up to five people and hold assets of up to €1 million.

Opposition Akel MP Costas Costa described the withdrawal of the Efstathiou-Perdiki proposals as positive and welcomed the adoption of those by the Ombudsman who has basically improved them.

Perdikis described Ioannou’s proposal as very important since this will benefit thousands of small businesses.

 

Read more:

https://in-cyprus.com/consumer-service-finds-abusive-clauses-in-alpha-bank-housing-loan/

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