Bailout funding to Cyprus remains frozen due to unresolved insolvencies bill

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Nicolas Papadopoulos, leader of the DIKO party (The Democratic Party in Cyprus) who also chairs the House Finance Committee, has stated it is unlikely for parliament to vote in favour of the final bills on insolvencies by March 19th, when the present suspension of laws on foreclosures end.
Talks involving the Cyprus Committee & the House Interior Committee were held looking to review the fifth and final pieces of legislation on Wednesday, part of the delayed framework that has held up any further funding, as previously agreed by Troika in the terms of the bailout.

The bills are essential to help banks obtain assets and funds from the non-performing loans that account for about 50% of the national banking system’s total recorded loans, as a result of copious lending by bankers and the winding up of developers when property prices became too low to make profit.

When the bills were first reviewed that relate to the insolvency of natural persons and the restructuring of loans by borrowers, as well as the process for auctions, the opposition of main parties, communist AKEL and socialist EDEK, said they would not approve the bills in their current state.

Senior bankers, the majority of which were hired since the decision for a Troika bailout, have been tasked with rescuing Cyprus banks, claimed that they would not be looking to take the primary homes of small borrowers, but need the legal framework in place to chase big-time corporate borrowers and developers who were refusing to pay back their loans.