Cyprus parliament to vote on non-performing loans and foreclosures legislation

The Cypriot House of Representatives is set to hold a final session to vote on 21 legislative acts, including two government bills and 19 proposed laws concerning non-performing loans and property foreclosures. The primary focus of the legislation involves upgrading the debt verification mechanism managed by the Financial Ombudsman and making her decisions binding for disputes up to 20,000 euros. Borrowers will be granted earlier access to the Ombudsman upon receiving specific notification letters. While the government and the Central Bank have expressed concerns regarding potential blanket freezes on foreclosures, political parties are seeking to integrate various proposals to support borrowers. Internal disagreements have been reported within the DIKO party, where some members may deviate from official party lines. Key discussions remain centered on a DIKO-affiliated proposal to suspend foreclosures until the end of the year. The Parliament aims to finalize the legal framework through a combination of government bills and party-sponsored amendments.