Cyprus keeps up freeze on foreclosures

As the year comes to a close, it seems likely that the freeze on foreclosures on primary homes in Cyprus valued at up to 350,000 euros will be extended.

Initially imposed by credit buyback companies and banks in July, the freeze, originally set to expire on October 31, appears poised for an additional two-month extension. This extension is anticipated to remain in effect until the government and co-ruling parties can reach an agreement on a mutually acceptable legal framework for these foreclosures.

This freeze was initially introduced to grant the Ministry of Finance ample time to address the demands of co-ruling parties.

These parties were awaiting the preparation of a bill aimed at bolstering the powers of the financial commissioner and enhancing legislation for the establishment of a specialized jurisdiction known as the Divestment Court at District Court level. 

Unfortunately, drafting the legislation has faced significant delays, leading to mounting political pressure on creditors. While credit buyback companies deny such pressure, discussions about extending the freeze persist, and official announcements of the extension are expected soon.