Nicosia, Cyprus. MPs on Monday called for urgent changes to Cyprus’ foreclosure laws, pressing for the protection of borrowers and guarantors.
Calls for legal safeguards for borrowers and guarantors
Akel MP Aristos Damianou told the House finance committee that for a decade his party has sought “to restore the balance between the privileges of banks and, more so, credit acquisition and management companies and the elementary rights of borrowers and guarantors.”
He said the most basic right is “unhindered access to justice,” allowing borrowers to suspend the sale of primary residences or small business premises in cases of disputed loan balances or abusive clauses.
Damianou said similar efforts had historically failed and urged that bills submitted by Akel and other parties be discussed by February.
Concerns over evictions under current framework
“On Christmas Day, people were being evicted as a result of the existing legislative framework,” he said, adding that the finance minister “has pre-eminently rushed without listening to the proposals on their merits.”
Ecologists highlight timing gap between auctions and court rulings
Ecologists president Stavros Papadouris called for discussion of auction laws as soon as possible.
He highlighted a bill resubmitted in December 2023 that would allow borrowers to have courts determine the legal amount of debt before auctions proceed.
“In Cyprus, the completion of an auction is allowed within nine months to one year, while the determination of the legal amount of debt through the courts can take seven to nine years,” he said.
He also called attention to abusive clauses in non-performing loans affecting guarantors.
Parliamentary tensions re-emerge
The push for reform has reignited tensions in parliament.
What changes to foreclosure and auction laws do you think should be prioritised to protect borrowers and guarantors?
