The Christodoulides government’s pledges on foreclosures are of no value

Statement by AKEL Political Bureau member & Head of Economic Policy Charis Polycarpou

25 April 2023, AKEL C.C. Press Office, Nicosia

The Christodoulides government’s pledges on foreclosures are of no value. Despite the commitments and public announcements of the Minister of Finance on the issue of foreclosures, yesterday’s debate in the Parliamentary Finance Committee showed that the Government had neither a proposal, nor the will to address a series of problems left by the previous government.

At the same time, it has confirmed that the government is moving in the same policy line as the Anastasiades – DISY Government, as it clearly stated that it does not want any substantive changes to the legislative framework. It has rejected almost all of the proposals that were submitted before the Finance Committee, admitting that the much-vaunted “Rent-for-Installment” scheme faces problems in being approved at a European level and reiterated that it is still not ready to proceed with the changes concerning the special jurisdiction of the courts.

We consider as positive the support in principle given to AKEL’s proposal that in cases of voluntary exchange of mortgage for debt the market value of the property should be determined as the value of the property. At the same time, however, we insist on the need for the approval of a comprehensive framework for the protection of borrowers and small and medium-sized enterprises. We consider it necessary that the unhindered access to justice is restored, that an effective social policy on housing must be elaborated, including the dimension relating to foreclosures, but also the improvement in the supervision, not only of banks, but also of loan management or credit purchase companies.