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Thursday 6th August 2020
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Insolvency helpline

Insolvency helplineTHE EUROPEAN Party (EVROKO) has set up a telephone helpline which the public can call for information about the new insolvency laws.

Members of the public can call the party’s main line, 22 460033, ask a question and leave their number. The query will be directed to a team of experts, who will then get back to the caller.

The service is already up and running. The number may be reached during normal office hours, from the morning until 5.30pm.

Announcing the helpline on Tuesday, EVROKO chairman Demetris Syllouris said its aim is to help citizens learn about their rights under the new insolvency legislation and “deal with the dangers facing them.”

The information provided will mainly focus on borrowers’ options and rights under the insolvency framework, debt restructuring, the rights of debt guarantors, loans taken out in foreign currencies, excessive bank charges and the possibility of writing off these charges.

“The insolvency framework, as it was voted, converts the borrower into the weak link in the chain, it is weighted in the banks’ favour, it is not the safety net that we envisaged,” Syllouris said.

With the current laws, he added, “borrowers’ disputes with the banks will not be resolved, but rather will end up in court, with the cost burdening the citizens.”

“We are standing by the citizens to help them understand what they have to lose and what to gain from the laws of the insolvency framework.”

EVROKO spokesman Michalis Giorgallas told the Cyprus Mail that queries should typically take less than 24 hours to be answered.

The team of eight experts comprises economists and accountants.

And according to Giorgallas, the experts have been given strict instructions to provide callers with information only – such as which department or agency to contact to deal with an issue – and not advice.

The insolvency framework – a set of laws governing personal and corporate bankruptcy – was passed by parliament last month, but not before the parties had tinkered heavily with its clauses.

The framework passed with the 33 votes of ruling DISY, as well as DIKO and EDEK.

EVROKO was among the parties who voted against.

5 COMMENTS

  1. So you were mis-sold a mortgage and you have to play it the banks way or not at all. My offer of help from the bank was for them to reduce the current level of the overall mortgage. If we put the figures into sterling it is as follows.

    I borrowed £65K against the property in 2005 and I now owe £133K to settle the debt after paying the mortgage for 9 years.There was no way on earth could I afford the crippling repayments the bank was asking so I have been paying a reduced figure for the last 3 years.

    The bank’s offer of help was to reduce the debt by £20K on condition that I could find another bank to take on the mortgage. No other bank will go anywhere near lending money against a property that is still owned by the developer, who has himself got into financial difficulty with loans issued against the site. Both these loans (Developer and purchaser) were from the same bank.

    I rang this helpline and was given a number to ring. Guess what, it was the bank’s re-structuring department. It’s a joke.

  2. So you can get information on which department or agency to contact by contacting an expert accountant or economist who cannot give advice!

    I think Pils is correct.

  3. Insolvency helpline? please ring whilst we play pass the parcel and eat fudge cake.

    Court is possibly the only way forward in resolving foreign currency mis-selling etc. etc. etc.

  4. Is this help line any help to the people whose developers have gone into liquidation or is this still to come?

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