Cyprus parliament postponed for tomorrow (Saturday) the scheduled for Friday plenary session for the approval of a foreclosures bill, which is a precondition for the disbursal of the next tranche of the €10 billion bailout by Cyprus international lenders. At the same time the controversy between the Government and the opposition parties grows, with unknown consequences for the fate of the bill
The postponement was necessary in order to convene Thursday evening an extraordinary Cabinet to approve a new bill, which incorporates the amendments agreed by the Troika.
During a closed meeting of the parliamentary committees of Financial and Internal Affairs on Thursday, the opposition parties decided to submit such law proposals to protect the primary residence and commercial property up to € 350.000 and to put the bill into force concurrently with the insolvency framework to be implemented on January 2015.
For the above issues, the international lenders have already transferred their refusal, while the ruling Democratic Rally (DISY) party has told that they will only vote for a new government bill, which includes the amendments accepted by the Troika.
Chairman of Parliamentary Finance Committee, Nicolas Papadopoulos said that tomorrow at 10.00 the Committees of Finance and Internal Affairs will reconvene, to examine the new bill expected to be approved later in the afternoon by the Cabinet and to consider the next steps in relation to the amendments and bills that will be tabled in the plenary session on Saturday.
The Euro area finance Ministers that would decide on the next disbursement for Cyprus, will meet on September 12.
Debate
Parliamentary Committees on Financial and Budgetary Affairs and Interior meet anew on Friday morning to continue their discussion on the bills on foreclosures, a precondition for the disbursal of the next tranche of the €10 billion bailout by Cyprus' international lenders.
The two Committees have invited to their joint meeting Attorney General Costas Clerides, Minister of Finance Harris Georgiades, Minister of Interior Socrates Hasikos, Central Bank Governor Chrystalla Georghadji, Financial Commissioner Pavlos Ioannou and Acting Director of the Department of Lands and Surveys Kyriakos Tsolakis.
In an extraordinary meeting, on Thursday evening, the Cabinet approved seven amendments to the relevant bills and sent the amended bills back to Parliament.
According to a written statement by Government Spokesman Nicos Christodoulides, the amendments approved by the Cabinet safeguard lenders` right to use the Department of Lands and Surveys` evaluation of their property and forbid large bank shareholders to participate in the foreclosure process. The amendments protect property purchasers who have submitted to the authorities a sales contract but have not as yet received a title deed to the said property.
They also safeguard the rights of debtors in cases where the loan has been sold to a credit or non – credit institution.
The amendments approved by the Cabinet also include an obligation on the part of the Central Bank of Cyprus to inform Parliament on a quarterly basis on the data as regards the restructuring of loans.
They also include the non payment of taxes or fees in cases where property has been transferred to the bank as part of a loan restructuring and extend the right to legal aid in judicial cases regarding foreclosures.
