Nicosia, Cyprus. Finance Minister Makis Keravnos and opposition figures signalled growing political alignment on foreclosure policy, even as the government rejected calls for a blanket suspension. Disy and Diko are expected to extend their cooperation to foreclosure legislation.
Meeting highlights and shared priorities
The issue came into focus after a meeting between Keravnos and Disy president and House speaker Annita Demetriou, where both sides appeared to converge on maintaining economic and financial stability while updating the legal framework, according to Philenews.
“We cannot risk the stability of the economy and the financial sector,” Demetriou said. She added that the legal framework governing foreclosures must be modernised in a balanced way, echoing the government’s position that social policy should remain the responsibility of the state.
Proposals under preparation
During the meeting, Disy raised the possibility of reinstating the rent-for-installment scheme aimed at supporting vulnerable borrowers.
Disy and Diko are preparing to jointly promote two legislative proposals, with Disy focusing on strengthening protections for guarantors and Diko proposing the appointment of special judges to examine loan balances, outstanding debt and potentially abusive clauses.
Parliamentary backing and objections
With backing from other parties including Edek, Dipa and independent MPs, the Disy proposal is expected to secure parliamentary approval.
It remains unclear whether the government will support both proposals, as legal and constitutional concerns have been identified in certain provisions. The Central Bank of Cyprus (CBC), the Association of Cyprus Banks and credit-acquiring companies have expressed disagreement with aspects of the proposals.
What changes to foreclosure legislation do you want lawmakers to prioritise?
