Fore­clo­sures bills are un­con­sti­tu­tional

Financial Mirror (Cyprus) - - FRONT PAGE -

A set of four bills tabled by op­po­si­tion par­ties in par­lia­ment to al­ter the pack­age on fore­clo­sures of mort­gages are un­con­sti­tu­tional, the Supreme Court said on Fri­day, thus paving the way for the Troika of in­ter­na­tional lenders to re­lease the sixth tranche of ?436 mln in bailout money.

The high­est court jus­ti­fies Pres­i­dent Anas­tasi­ades, re­ports said, whose ef­forts to get the bill, as well as a par­al­lel ef­fort on in­sol­ven­cies through par­lia­ment had stalled by pop­ulist politi­cians, not re­al­is­ing the out­stand­ing ac­tion was the only re­main­ing ob­sta­cle for banks to re­cover a record rate of non­per­form­ing loans.

The is­land’s com­mer­cial and co­op­er­a­tive banks, with more than 50% of their loan-book deemed as NPLs, will now be able to be­gin a process of di­a­logue with bor­row­ers to re­cover as­sets, par­tic­u­larly from ma­jor cor­po­rates that are cash-rich and refuse to pay back their loans.

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