Foreclosure chaos averted in Cyprus

The Cyprus Parliament voted against two non-government bills about borrowers’ rights last Thursday, which disregarded warnings from the government and the Central Bank about potential threats to the stability of the financial sector.

This marked the final plenary session addressing pending legislative matters before the summer recess. The initial bill, proposed by AKEL, ELAM, DEPA, EDEK, the Cyprus Greens and three DIKO MPs, sought to grant borrowers the right to obtain a court order halting ongoing foreclosure proceedings against their property. The grounds for seeking such an order included unfair contract clauses and overcharging by banks.

The vote resulted in a tie, with 27 in favor and 27 against. The majority of MPs also rejected the second bill, which was introduced by EDEK and focused on selling a property at the estimated price on the date of signing a loan agreement.

Government spokesperson Constantinos Letymbiotis took to Twitter, stating that the defeat of the bill that could have led to a widespread suspension of foreclosures demonstrated a commitment to responsibility and a rejection of past populist tendencies and improper practices.