- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Who are MPs trying to protect?

Who are MPs trying to protect?THE GOVERNMENT is considering how to best deal with the aftermath of the decision by Parliament to delay the implementation of the foreclosures law until the end of January.

Government spokesman Nikos Christodoulides said the Troika of international lenders may postpone its arrival in Cyprus to review progress on the implementation of the bailout adjustment programme.

The Eurogroup has expressed its displeasure at the delay in implementing the law, saying that repossessions are necessary to enable banks to deal with non-performing loans.

In August chairman of the Bank Association Giorgos Georgiou said that “Commercial banks have no intention to foreclose on the homes of vulnerable groups. All countries in the world must have effective legislation.”

“There are many borrowers who strategically do not pay,” he said. “The legislation will force them to come and pay.”

At the same time, Christis Hassapis the (then) Chairman of the Bank of Cyprus said “BoC’s intention is to look at large borrowers first. Small borrowers have nothing to fear. We will start with the millionaires and work our way down.”

As it stood in September the Foreclosures Bill forbade foreclosing on a property that had been sold but which was burdened by a mortgage, providing that the purchaser had paid at least 80% of its purchase price.

When you consider that only three foreclosures have ever taken place in Cyprus and that the foreclosure law forbade the repossession of a property under certain circumstances and that the banks have assured President Anastasiades that they will not target vulnerable groups, you really have to wonder who opposition MPs are trying to protect.