President Christodoulides blocks foreclosure and insolvency laws

President Nikos Christodoulides has taken action on twelve pieces of legislation passed by the Cypriot Parliament on April 6, 2026, concerning foreclosures, insolvency, and guarantors. Following advice from the Law Office, the President referred five laws back to parliament and challenged four others before the Supreme Court on constitutional grounds. Three measures, including two government bills and one private member's bill, were signed into law. The rejected legislation faced concerns regarding unconstitutionality, legislative errors, retroactivity, and conflicts with existing law. Specifically, the President objected to provisions that would allow district judges to handle certain foreclosure appeals, place caps on interest rates, and restrict banking guarantees. The House Finance Committee is scheduled to examine these referrals on Thursday before the parliament dissolves for the May 24 elections. Government sources state these actions aim to correct legal distortions and protect the financial system. The parliamentary majority faced criticism for passing proposals with known legal weaknesses.