Arab Today, arab today cyprus parliament adopts crucial foreclosure bill
Last Updated : GMT 06:37:29
Arab Today, arab today
Arab Today, arab today

Cyprus parliament adopts crucial foreclosure bill

Arab Today, arab today

Arab Today, arab today Cyprus parliament adopts crucial foreclosure bill

Cypriot members of parliament
Nicosia - AFP

The Cypriot parliament adopted Saturday a controversial bill to streamline bank foreclosures of bad debts, clearing the way for international lenders to release the next tranche of a 10 billion euro loan.
The emergency vote came a day after a deadline set by the so-called troika of lenders, who bailed Cyprus out last year and had warned that the next tranche, 436 million euros ($565 million), would be withheld unless the bill was passed.
The foreclosure bill was approved by a vote of 47-seven, with one abstention, in the 56-member House of Representatives.
The new law ensures that foreclosures cannot be indefinitely delayed, reducing the process from years to months, establishing procedures for valuating properties and auctioning them.
As for borrowers, it allows them to appeal estimated valuations and obliges banks to try to restructure loans before seeking repossession of homes, while also preventing banks from arbitrarily upping the lending rate.
In a separate vote, MPs decided that the foreclosures bill will not come into effect until the government submits a separate bill on insolvencies, scheduled by the end of the year.
That would govern the treatment of specific groups of individuals based on their ability to repay their debts, and is a reflection of fears there would be mass repossessions of first homes in the recession-hit economy.
It was backed by the opposition parties which hold a parliamentary majority, but opposed by the ruling right-wing Disy party.
Government spokesman Nicos Christodoulides welcomed passage of the foreclosures bill, saying in a statement that it "changes and modernises" current procedures.
He said the bill, supported by the troika of international lenders, was passed without substantial changes to its content.
However, referring to the second measure, he said the government "would carefully evaluate its content and possible consequences."
The government aimed "to promote reforms in a way that primarily ensures the protection of vulnerable groups, while simultaneously guaranteeing the process of recovery and stabilisation of the economy."
- Country needs 'calm' -
President Nicos Anastasiades has the power to send it back to parliament for review, or to the Supreme Court, either step of which would freeze its implementation until action is taken.
Opposition AKEL MP Yiannos Lamaris urged Anastasiades not to do that.
"What this country needs today is calm and dialogue, not a political crisis, and I consider such an action by the president would cause a chasm in society," Lamaris told reporters.
Around 46 percent of Cypriot bank loans are classed as non-performing (NPLs) for being seriously in arrears. Under current legislation, it can take banks 20 years to recover the money.
The troika (International Monetary Fund, European Commission and European Central Bank) said that, if the bill were not passed, the NPLs must be classed as non-recoverable and Cypriot banks will fail EU stress tests due in the autumn.
The next 436 million euro tranche of bailout money is due in late September.
In return for the March 2013 rescue, the government adopted swingeing austerity measures and radically restructured the bloated banking sector.
Credit rating agency Moody's Investors Service said in early August that Cyprus has an "elevated risk of default in the medium-term" because of the high level of NPLs.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today cyprus parliament adopts crucial foreclosure bill Arab Today, arab today cyprus parliament adopts crucial foreclosure bill

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today cyprus parliament adopts crucial foreclosure bill Arab Today, arab today cyprus parliament adopts crucial foreclosure bill

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday