According to the bill submitted for consideration by the deputies of the "Cooperation of Democratic Forces" party at the plenary session of Parliament, which took place the other day, the rules for alienating real estate from debtors may change in Cyprus.
Therefore, the members proposed to establish a 10-day deadline for paying the principal debt. And a 30-day deadline for paying interest on loans from the moment a notification of type "I" is received from banking institutions, after which, in case of non-payment, the bank will be able to exercise its right to sell the pledged property.
In turn, debtors will have the right to apply to arbitration with an out-of-court financial dispute resolution body. Within 30 days after the dispute is submitted to arbitration, the arbitrator will decide on the economic argument.
After the arbitrator's decision, the debtor and the creditor will continue to retain their rights provided for by law.
According to the new law authors, Angelos Votsis, Marinos Musiuttas, and Yorgos Prokopiou, the proposed regulation will facilitate constructive dialogue between lenders and borrowers. It will help to carry out a reasonable restructuring of the loan, as well as reduce debt.