The Cypriot government will hold in talks with the Troika (EC, ECB, IMF) on Monday to discuss its position on the content of a multitude of legislative proposals adopted on Saturday by the majority of the House of Representatives plenary on foreclosures.
CNA sources say that talks will take place both on a political and a technocratic level.
Depending on the results of the talks with its international lenders, the same sources say, Cyprus President Nicos Anastasiades and his government will then decide how to proceed and whether or not to refer any of the legislative proposals back to Parliament.
The House of Representatives approved during an extraordinary plenary session on Saturday a bill on foreclosures together with a series of other bills, amendments and other legislative proposals tabled by the political parties.
Amendments to the main foreclosures bill included a provision protecting bona fide buyers who purchased property from land developers by removing a clause on the mandatory payment of 80% of the value of the property. A clause on the sale of a property at 50% of its value, as one of the steps of the foreclosure process was also removed, leaving the price of the sale open at that stage.
A left-wing AKEL and social democratic EDEK legislative proposal providing for the protection of primary residencies and small businesses for mortgages up to €350,000, was adopted by all other parties, apart from governing party DISY. The proposal had previously been rejected by the Troika.
The majority of the plenary also passed a DISY resolution calling on the government to submit to Parliament the legal framework for insolvency, a set of bills protecting vulnerable borrowers, in a timely manner so that it can be adopted by the end of December 2014.
A DIKO legislative proposal also linking the implementation of the foreclosures bill with the insolvency framework was adopted unanimously.
In addition, MPs adopted a series of other legislative proposals aiming to protect borrowers.
In a statement after the bill on foreclosures was passed, Government Spokesman Nicos Christodoulides expressed the government`s satisfaction over its adoption, noting that the bill amends and modernises the foreclosures` process. He also said that the final content of the bill which was adopted without significant amendments is acceptable by the Troika.
At the same time, he added that the government will review carefully the content of all other legislative proposals adopted by the majority of the House of Representatives and their impact.
Christodoulides also promised the government will do its utmost for a framework on insolvency, a safety net for vulnerable groups, to be implemented fully and in a timely manner.
The government`s goal he stressed was to put forward provisions which modernise the current framework, safeguard vulnerable groups of citizens and guarantee the stabilisation and recovery of the Cypriot economy.
Opposition parties AKEL, DIKO and EDEK called on the President of the Republic Nicos Anastasiades not to refer back to parliament any of the legislative documents adopted by the majority of the plenary.
Adoption of the bill constituted a precondition for the disbursement of the next tranche of the island`s €10 billion financial assistance programme.
The approval or not of the disbursement of the next tranche of the Cypriot programme, is expected to be decided by a Eurogroup meeting next Friday.
