Fore­clo­sures: much ado about noth­ing…

Financial Mirror (Cyprus) - - FRONT PAGE -

Play­ing on the words of Shake­speare, a lot of fuss is be­ing kicked up about an is­sue with­out sub­stance.

The fore­clo­sures leg­is­la­tion had been un­der dis­cus­sion for a whole year which was noth­ing more than time wasted.

The leg­is­la­tion has been ap­proved but we are cer­tain that even those who voted for it do not know what they voted for.

It is a para­dox and at the same time a sad ob­ser­va­tion, but it seems that not even the thou­sands of peo­ple bur­dened with non- per­form­ing loans (NPLs) have any idea what the law is all about.

It is peo­ple

im­por­tant to have a for th­ese pro­tec­tion frame­work.

For the frame­work to be use­ful, though, the con­di­tions as well as the de­gree to which you are pro­tected must be crys­tal clear.

It is pri­mar­ily for this rea­son that the Cyprus As­so­ci­a­tion of Prop­erty Own­ers, (KSIA), has taken the ini­tia­tive to or­gan­ise a meet­ing on May 27, at 5pm at the KEVE of­fices in Ni­cosia, to dis­cuss and in­form own­ers fac­ing non-per­form­ing loans prob­lems.

Those hold­ing NPLs must know that there are a lot of op­tions avail­able to them be­fore a bank can go ahead with prop­erty fore­clo­sures. To begin with, loan re­struc­tur­ing can be dis­cussed with two bank bod­ies.

Based on cer­tain cri­te­ria, the help me­di­a­tor can also be em­ployed.

Peo­ple can also re­fer their case to an in­sol­vency con­sul­tant to find out if a so­lu­tion can be found based on a re­pay­ment plan en­vis­aged by the in­sol­vency leg­is­la­tion.

Even in the case that none of the above so­lu­tions works and the bank goes ahead with fore­clo­sure pro­ce­dures, the main res­i­dence is pro­tected un­der some

of a con­di­tions. As a last re­sort, cit­i­zens can take the case to court, some­thing which will buy them a lot of time.

Sum­ming up the mea­sures and tools peo­ple have at their dis­posal, (loan re­struc­tur­ing, Cen­tral Bank di­rec­tives, etc) it would take at least 4-5 years be­fore a prop­erty could be fore­closed. Dur­ing this pe­riod, it might very well be that the fi­nan­cial sta­tus of own­ers change for the bet­ter and a bet­ter so­lu­tion is found.

In con­clu­sion, there has been a lot of noise gen­er­ated around this is­sue, which is noth­ing more than noise. Re­al­ity is far dif­fer­ent.

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