Guarantor protection through bill proposal – Cooperation of DISY, EDEK, DIPA and independents

Several Cypriot political parties and independent MPs have submitted a bill to Parliament aiming to protect loan guarantors. The bill amends the law regarding property transfers and mortgages. It limits the liability of guarantors to the initial loan amount, after deducting the auction proceeds or the value if the property is repossessed. The law will not apply to guarantors who are also primary borrowers. Furthermore, lenders must await a court decision regarding disputed loan amounts before pursuing action against guarantors if they have not foreclosed on the property.