Nicosia, Cyprus. Serious constitutional and institutional concerns have been raised over a new foreclosure law after President Nikos Christodoulides referred it to the Supreme Court, Cyprus News Agency reported.
Referral following parliamentary approval
Citing a government source, Cyprus News Agency said the legislation concerns the Transfer and Mortgage Law amendment of 2026 on abusive clauses, recently passed by parliament.
Government frames move as constitutional review
According to the source, the referral constitutes a formal constitutional review rather than a political dispute and is aimed at safeguarding the legal order. The source said it was “an institutional review of constitutionality and not a political confrontation,” adding that the referral is “a tool to ensure the proper functioning of the legal order.”
Executive remit and fiscal implications
The source said the president acted within his constitutional powers by exercising the right to refer legislation to the Supreme Court. It added that the law has direct implications for fiscal policy and economic planning, which the source said fall under the remit of the executive branch. “There is an issue of intervention by the legislative power into the core of executive competences,” the source said.
Concerns over financial system impact
The government warned that the legislation could weaken the foreclosure framework, posing risks to the functioning of the financial system. According to the source, it may encourage abusive legal appeals, delays in foreclosure procedures and strategic defaults.
How do you think the Supreme Court’s review could affect the foreclosure framework in Cyprus?