Cyprus politicians divided over expansion of the current housing loan system

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It seems that the opposing political parties in Cyprus are being further divided by new legislation; this time over the expansion of the housing loan system. The government tried to impose an amendment that effectively licenses and supervises non-credit institutions offering housing loans, stating that it will only add further instability to the current system, ultimately putting Cyprus borrowers at risk.

Earlier this year, the House passed legislation designed to transpose EU-wide regulations on mortgages into domestic law; effectively introducing credit intermediaries, something which will to lead to greater competition within the lending market and therefore reduce interest rates for borrowers.