Nicosia, Cyprus. Opposition party Disy has presented a proposed law aimed at relieving thousands of guarantors who remain financially liable for loans without having received any benefit. The bill was submitted to parliament on Thursday and discussed at a press conference on Friday.
Bill submission and political support
Disy president Annita Demetriou said it was “not possible for thousands of our fellow citizens to remain trapped for so many years, without having received a single euro”. The bill was presented by MP Averof Neophytou and co-signed by MPs from across the aisle.
Demetriou criticism of government and tax approach
Demetriou criticised the government’s handling of rising costs, describing its methodology as “deeply flawed”. She said Disy had worked constructively to improve tax reform, focusing on supporting the middle class, families and Cypriot businesses, while adding that further support was still needed for low-income pensioners and people with disabilities.
Calls on taxes and banking interest rates
Demetriou reiterated the need for a favourable tax system and rejected calls for new taxes which, she said, “always end up burdening the people”. She also called on banks to reduce the gap between lending and deposit interest rates, saying both the government and the central bank must act in that direction.
Proposed limits on guarantor liability
Presenting the proposal, Neophytou said conditions in the banking sector had changed, with banks now showing strong profitability, while most non-performing loans were no longer held within the system.
Under the proposed law, in cases of auction or repossession of mortgaged property, a guarantor’s liability would be limited to the original loan amount minus any sum recovered through the sale.
Where such limitation is disputed, banks or credit acquisition companies would be required to suspend the sale and await a court ruling.
How would the proposed law affect your liability if you acted as a guarantor for a loan?
