Cypriot parliament addresses presidential referrals on foreclosure and insolvency legislation

On Thursday, the plenary session of the Cypriot parliament addressed five legislative referrals issued by President Nikos Christodoulides regarding foreclosure and insolvency laws. Parliament accepted four of the five referrals, in most cases opting to modify the texts according to presidential proposals to ensure they could be enacted. Specifically, the amendments related to personal repayment plans, interest rate liberalization, credit agreements for residential property, and court procedures were passed with modifications. The assembly rejected the presidential referral of the 'Transfer and Mortgage of Immovable Property (Amendment) (No. 2) Law of 2026' with 38 votes against. Deputies from AKEL and other opposition members expressed strong disagreement, characterizing the presidential actions as political interference rather than purely legal or constitutional concerns. Proponents of the original laws, including AKEL, emphasized the importance of protecting vulnerable borrowers from abusive banking practices. Following the plenary debate, modified versions of the contested laws were approved with 30 votes in favor and 20 against. The government had previously cited concerns regarding retroactivity, legal ambiguity, and potential threats to financial stability as the basis for the referrals.