Supreme Court to hear challenges against foreclosure laws in June

The Supreme Constitutional Court of Cyprus is scheduled to begin hearings in mid-June regarding five foreclosure laws passed by Parliament on April 6, 2026. President Nikos Christodoulides challenged these laws following advice from the Legal Service, which identified them as clearly unconstitutional and potentially harmful to the financial system. The legislation includes provisions to limit the liability of guarantors to the initial loan amount, mandates that creditors exhaust all measures against primary debtors before pursuing guarantors, allows for the debt balance to be written off after foreclosure, and suspends the foreclosure of primary residences valued up to 350,000 euros until the end of the year. During proceedings on April 29, the court granted the Parliament's request for time to file objections and provided both parties with a deadline for submitting written arguments. The legal document process is expected to conclude within ten weeks, at which point the official hearing date will be published on the court's website. Legal advisors argue that the laws suffer from ambiguity and violate fundamental constitutional articles.