Cyprus parliament approves new legislative package on loans and foreclosures

On Monday, the Cypriot Parliament passed a comprehensive legislative package regarding loans and property foreclosures. The package includes two government bills and several additional proposals aimed at increasing borrower and guarantor protections. The first bill, concerning the Financial Commissioner and out-of-court dispute resolution, passed with 32 votes in favor, 18 against, and one abstention. The second bill, regulating property transfers and mortgages, passed with 37 votes in favor and 15 against. Key measures include making the Financial Commissioner's decisions binding for disputes up to €20,000, though banks retain the right to appeal to court. Borrowers gain earlier access to the Commissioner upon receiving the 'I' letter and can now utilize personal repayment plans as a last resort to prevent home foreclosures. Opposition party AKEL opposed both bills and requested a postponement of its own proposal regarding unfair banking clauses and the right to judicial recourse. Government officials and opposition parties remain in disagreement over the effectiveness of the current framework compared to European standards.