New fore­clo­sures law sent back to par­lia­ment… again!

Financial Mirror (Cyprus) - - FRONT PAGE -

Pres­i­dent Ni­cos Anas­tasi­ades has sent back to par­lia­ment a bill ap­proved by the op­po­si­tion last month that calls for a sus­pen­sion of the frame­work law on fore­clo­sures, un­til the re­lated bill on in­sol­ven­cies is also tabled.

Gov­ern­ment spokesman Ni­cos Christodoulides said that the Pres­i­dent’s aim was to avoid yet another prospect of sus­pen­sion of the pro­gramme with the Troika of in­ter­na­tional lenders.

Anas­tasi­ades dis­cussed the de­lay with In­te­rior and Fi­nance Min­is­ters Socratis Hasikos and Haris Ge­orghi­ades who said that the fi­nal two bills of the six-pack mea­sures on in­sol­ven­cies would be tabled “within Jan­uary.”

Al­ready, the IMF sus­pended the next tranche of about EUR 86 mln in aid be­cause of the new bill, just after Cyprus had al­ready se­cured some 350 mln from the Euro­pean Sta­bil­ity Mech­a­nism.

The com­mu­nist party AKEL had sought a sus­pen­sion un­til June, while AKEL, Cen­tre right DIKO, the Cit­i­zens’ Al­liance and the Greens com­pro­mised with the so­cial­ist EDEK pro­posal for a sus­pen­sion un­til the end of Jan­uary. Non-pas­sage of the frame­work bill de­lays ef­forts by com­mer­cial banks to en­force fore­clo­sures on de­lib­er­ate non-per­form­ing loans, cur­rently rep­re­sent­ing more than 50% of their loan books, a re­quire­ment by the Troika of in­ter­na­tional lenders for banks to re­duce their high-risk ex­po­sure. The pres­i­dent’s move is likely to lead to a new round of lengthy de­lib­er­a­tions be­tween the ex­ec­u­tive and the leg­is­la­ture over the fore­clo­sures law.

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