Government Bill hands another weapon in the hands of the banks

Statement of Stavros Evagorou, Deputy Parliamentary Spokesperson of AKEL-Left-New Forces

AKEL C.C. Press Office, 6th October 2015, Nicosia

 

Since the government and ruling forces took care to pass a dangerous for borrowers’ “insolvency framework” with a very weak web of protection they are now aiming to provide another weapon in the hands of the banks, namely that of the “packetization” and selling off of loans to foreign hedge and speculative funds.

We wonder who will really benefit from the approval of this bill. Will Cypriot borrowers or small businesses benefit? Certainly none of them will benefit only the banks and foreign investment funds.

Banks will gain because they will improve their indicators and acquire immediate liquidity by transferring proceeds of the future to the present. Hedge speculative funds will buy loans at ridiculous prices aiming at future profit.

This will lead to a massive transfer of properties from the majority to the privileged few. No guarantees whatsoever either with regards the primary home or small business premises are included in the government’s bill.

As AKEL, we clarify that we will never accept the mass sell-off of our fellow citizen’s homes, either to foreigners or to any domestic speculators.

This is the reason why AKEL will vote against the government Memorandum bill. At the same time, we will table before the plenary of the House of Representatives our own proposal, which provides for the abolition of the selling off of loans ensuring primary homes or commercial premises worth up to 350,000 euros.