CYPRUS: Troika suspends visit for next review

The Troika of international lenders has informed the Ministry of Finance that it is suspending its forthcoming visit to Cyprus, scheduled for January 20, because the island’s parliament has postponed the law on foreclosures until January 30.

President Nicos Anastasiades said on Monday that he will send back to parliament (veto) the revised bill that was introduced despite warnings from the creditors from the IMF, the ECB and the EU, that such a delay could jeopardise the next tranche of about 430 mln euros, as part of the 10 bln bailout agreed in 2013.
The revised bill was drafted by the smaller socialist Edek group and supported by all opposition parties in December in an effort to appease rising concerns from home-owners that the new package on foreclosures and insolvencies favoured banks and that mortgaged properties would be sacrificed.
Having already secured 350 mln euros from the EU and the ECB, parliament proceed with the draft changes, after which the IMF said it would not go ahead with the final pat of 86 mln euros.
The latest rift may also force the government’s hand to urgently conclude the outstanding pieces of legislation that have yet to be tabled in parliament.