Nicosia, Cyprus. Finance Minister Makis Keravnos on Tuesday ruled out discussions on a blanket freeze of foreclosures following a meeting with a Disy delegation led by party president and House Speaker Annita Demetriou. He said decisions on foreclosures must be reasonable and balanced.
No universal freeze under discussion
Keravnos warned that measures on foreclosures could create further economic problems, noting monitoring by rating agencies, the European Union, and lending institutions that assess Cyprus.
He said broad interventions regarding foreclosures are currently off the table, specifically ruling out any attempt to implement a universal freeze. “Therefore, horizontal issues regarding foreclosures, with a freeze of foreclosures at this time, should not be discussed,” he said.
Focus on strengthening institutional framework
Instead, Keravnos emphasised strengthening the existing institutional framework governing the handling of distressed loans and property repossessions. He said the role of the Financial Commissioner should be strengthened to resolve problems without putting the economy at risk.
Monitoring regional developments
Keravnos said the government is closely monitoring regional geopolitical developments and their potential economic impact. He said various scenarios are being assessed daily regarding possible effects on the economy due to developments in the region.
His remarks came amid heightened uncertainty in the broader region, with authorities assessing possible risks to economic stability and financial conditions in Cyprus.
What measures do you think should be prioritised to address distressed loans without risking economic stability?