AKEL ON THE CONFISCATION OF RESIDENCES
Statement by George Loucaides, AKEL C.C. Spokesperson
The Government seems either not able to recognise what it has agreed to in the updated Memorandum or rather, it deliberately chooses to hide the true provisions of the Memorandum. In paragraph 1.5 an explicit reference has been added prohibiting the adoption of measures to protect people from the confiscation of their homes. Furthermore, in the same paragraph the set date of tabling the relevant Bill in parliament has been shifted from mid-2014 to February 2014.
The philosophy and policy of the government and ruling forces supporting it in all cases, whether with regards the law on rents, the taxation of immovable property, the extension of shop opening hours, privatizations, or now, concerning the updated Memorandum, the lending rates and the protection of the first residence is the same everywhere .
Anything that protects and offers relief to our people and citizens is rejected arbitrarily or the Constitution and Memorandum terms which the government itself agreed are invoked. Likewise, anything serving the interests of large private interests is, according to the government and ruling forces, deemed as legally, constitutionally and absolutely necessary.
We do not accept this socially unjust philosophy of the government and ruling forces and we will continue to we fight against it, defending our people.
To compare, we list the relevant extracts of the Memorandum.
Previous Memorandum:
1.6. Strong efforts should be made to maximise bank recovery rates for non-performing loans, while minimising the incentives for strategic defaults by borrowers. The administrative hurdles and the legislative framework currently constraining the seizure and sale of loan collateral will be amended such that the property pledged as collateral can be seized within a maximum time-span of 1.5 years from the initiation of legal or administrative proceedings. In the case of primary residences, this time-span could be extended to 2.5 years. Based on a report commissioned to an independent expert, the necessary legislative changes will be submitted to the House of Representatives by mid-2014 and implemented by end-2014, macroeconomic conditions permitting.
New version of the Memorandum – November 2013:
1.5. Strong efforts should be made to maximise bank recovery rates for non-performing loans, while minimising the incentives for strategic defaults by borrowers. The administrative hurdles and the legislative framework currently constraining the seizure and sale of loan collateral will be amended such that the property pledged as collateral can be seized within a maximum time-span of 1.5 years from the initiation of legal or administrative proceedings. In the case of primary residences, this time-span could be extended to 2.5 years. Based on technical assistance, the necessary legislative changes will be submitted to the House of Representatives by end-February 2014 and implemented by end- 2014, macroeconomic conditions permitting. The authorities commit not to introduce any further impediments to the seizure of assets pledged as collateral.
