A TEAM from the troika is expected to arrive in Cyprus on 10th November for consultations following the Supreme Court’s decision to rule four laws designed to limit the scope of the foreclosure legislation unconstitutional.
According to the Cyprus News Agency, the troika team is expected to remain in Cyprus until 14th November during which time it will discuss the new insolvency framework with the Cypriot authorities.
The framework, which is designed to protect vulnerable groups from foreclosure as a consequence of the economic downturn, is expected to be ready by the end of the year.
The government is already in discussions with the political parties on the bills comprising the framework and has requested each of the parties to nominate an expert. AKEL has refused to send an expert.
One wonders if the question raised by Jonathan Arnott MEP ref. the Banks Scam on selling CHF loans will be discussed. The Alpha Bank seem to be the main culprit in this practice but we hardly ever hear any mention ref. this Bank and their responsibility for ethical lending . What benefit to themselves were the motives in pushing these loans? Was it because the CHF interest rate was the most beneficial and they wanted the ‘Lions Share’ of the foreign purchase market. Well, they are certainly reaping what they have sown now with customers now not being able to afford their repayments. Their profits are now being eroded by taking out 2nd charges on borrowers U.K. homes. What % of NPLs do they hold now? There is an interesting report on You-Tube implying that wealthy Russians are using CY as an intermediary for purchasing from the Western World and that the Banks in CY are holding trillions in Russian money.
We can but hope that this trip will bear fruit and that some sense of normality and best practice will be forcefully instilled into those intent on protecting their votes by stalling and avoiding what is necessary to counter the inevitable results of their previous economic mismanagement.
I will not be holding my breath as one thing my short life of 65 years has taught me is that if there is any way we can avoid having to pay, we will take it, and those who owe millions if not billions will be using all their connections and contacts to pressure those who will be forced to make a decision to make it in a form that suits and favours the debtors not the Country, the economy or its people necessarily. We have shown ourselves to be world leaders in the field of deception, avoidance, economic and political ineptitude, nepotism and subservience to any Country we perceive as being in a position to protect our self serving status.
We are slowly being forced to realise that we are not the centre of the Universe and our tiny status is just that. Perhaps we will be forced to concentrate on our strengths, natural resources and people to drag us out of the mire our so called leaders have dragged us into. I still have a little faith in this President to do the right thing but it is a massive ask and it will cost him and his party.
Better Late than Never!
CPB/CNA 14th May, 2014:
Quote: The current MOU provides that the insolvency legislation will be reformed by June and the new framework also covering foreclosure will be implemented by end 2014. “We are considering a change in the time frames and front-loading the reforms, if this is possible,†a Troika source told CNA. The reform in the whole framework will enable the banks to pressure borrowers to start servicing their loans, alleviating the acute liquidity problem currently observed in the banking sector.
Well after more political Duckin ‘ n Divin’ – almost 6 months later – these, and wider, issues are soon to be discussed. Hooray!. After all the tactical stuff by Cyprus politicians, meetings, discussions – actions, maybe – are to get underway…
Hopefully this is not simply another Sticking Plaster junket by the Troika! And Significant that one particular political party, (the one which formed the previous government that presided over, encouraged even, the incredible laxity and sloppiness that helped bring on the 2013 Crisis,) has decided not to participate in all this!!!
So-called Strategic Defaults should have been dealt with long before now, and as a priority those where stagnant Developer Loans have been preventing a major review and overhaul of the clearly rotten property development and end-purchase fiasco that has been festering in this country for over a decade, need to receive Priority attention.
As always it seems ‘progress’ in this country is incredibly, culturally even?, s-lo-w.