Cyprus parliamentary committee debates loan restructuring and foreclosure legislation

Members of the Cyprus Parliamentary Committee on Finance have debated proposed legislation concerning loan write-offs and foreclosure protections. DISY MP Averof Neofytou argued that the proposal to write off the remainder of a loan after interest is applied is constitutional. He noted that the legislation provides borrowers the option to reduce their debt by two-thirds, while also releasing guarantors from liability. Conversely, AKEL MP Aristos Damianou criticized the current handling of credit management and stated that AKEL has submitted 35 legislative proposals since 2014 to protect borrowers and guarantors. Damianou emphasized that the party seeks to limit the powers of banks and credit acquisition companies. The debate has highlighted disagreements regarding the legality of these measures and the potential requirement for judicial intervention before properties can be foreclosed. Political parties are now under pressure to clarify their positions on these protections before the dissolution of the House of Representatives.