Petrides raps foreclosure suspension in Cyprus

Cyprus’ Minister of Finance Constantinos Petrides called on President Nicos Anastasiades Friday to veto the proposal passed by the House plenary session on Thursday that suspends foreclosures on the homes of vulnerable borrowers for another three months – until February 2023.

Petrides expressed his disappointment at the decision, saying, “The outcome of [Thursday’s] plenary session of the House of Representatives to continue the suspension of foreclosure sales for the third time in a row is extremely disappointing and unacceptable.”

He stressed that the decision “erodes Cyprus’ credibility and causes significant discomfort both domestically and among investors, rating agencies and the European Union at a critical economic juncture when the positive path for further upgrading the Cypriot economy’s credit rating is in doubt, with government bond yields rising.”

Petrides added that “the ongoing suspensions of divestments do not take into account depositors and prudent borrowers who are marginalized and wronged to the benefit of strategic defaulters. The wrong message is given to society that there is no obligation to repay the loans, or that the state will come up with flawless arrangements that negate this obligation.”