The Democratic Forces Cooperation Party has put forward a new bill to the Parliament of Cyprus aimed at suspending the sale of all collateralized real estate in the country.
According to the explanatory note to the proposal, the main goal of the bill is to freeze the sale of mortgaged housing, regardless of its status, until the situation in the country stabilizes after the end of the COVID-19 pandemic and the lifting of restrictive measures adopted by the Minister of Health.
Party members called on the government to grant equal rights to all mortgage borrowers, without exception, as long as emergency circumstances that have a negative impact on the residents of Cyprus
As you may know the Cypriot parliament, in the midst of the debate on the approval of the state budget, approved in mid-December 2020 a bill by the AKEL party, according to which the country froze the procedures for selling mortgaged real estate worth up to EUR 350 000, which is the main residence of the borrower, as well as small commercial real estate.
The central bank, the Ministry of Finance and the Association of Banks have warned of the risks associated with a downgrade of the country's credit rating. Delays and lengthening of the time required for the sale of collateralized real estate can lead to a reduction in collateral in banks.
In turn, this will force banks to demand an increase in collateral and in the cost of borrowing. In addition, do not forget that the country's financial institutions are already not in the most advantageous position due to the suspension of payments and interest on loans.
Meanwhile, another Cypriot party, ELAM, has announced its intention to develop a bill guaranteeing the right of borrowers to appeal to a competent court and appeal to cancel the notice of the alleged sale of property, challenging either the amount of the debt or the legality of the contract.