Foreclosure law debate between main political parties in Cyprus

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Cypriot communist political party AKEL is likely to table a bill to main opposition the House plenum this week further extending a suspension on the foreclosure law, as was previously warned. At the moment, the new proposal extends the blanket exemption on repossessions to July 1st. This would apply to all residences, as well as business premises with a mortgage.
Cypriot communist political party AKEL is likely to table a bill to main opposition the House plenum this week further extending a suspension on the foreclosure law, as was previously warned. At the moment, the new proposal extends the blanket exemption on repossessions to July 1st. This would apply to all residences, as well as business premises with a mortgage.

But the AKEL bill is not expected to be supported beyond the communist party. Opposition party DISY meanwhile has its countered argument prepared with its own legislative proposal, under which all residences (excluding business premises) would be excused from foreclosures proceedings until next month.

Although foreclosure legislation was voted last September, primary residences had been excluded until January 1st, 2015, to correspond with the planned voting of the insolvency framework. The framework contains five different bills, and has yet to be submitted to the House as the fifth and final bill is still being deliberated between Cyprus authorities and the Troika group. However, even after the government forwards the insolvency package to the Parliament, a lengthy debate is expected to ensue.

Another consequence, should the foreclosures hang-up drag beyond March, is that Cyprus will not be eligible for the European Central Banks (ECBs) quantitative easing programme recently announced which will start this March and will run until end-September 2016.