The suspension of foreclosures is expiring but the government has not done anything

Statement by AKEL C.C. Spokesperson Giorgos Koukoumas

27 October 2023, AKEL C.C. Press Office, Nicosia

In three days the suspension of foreclosures expires, but the government has done nothing of what it pledged to do during all through this period.

We recall that last July, the government and the parties supporting it sided with DISY to prevent the proposal submitted by AKEL and other MP’s to restore the right of borrowers to have access to justice from being approved. However, nothing of what they promised has been implemented to date. The Rent for Rent Scheme has not yet been implemented. The bill on the powers of the Financial Ombudsman has not yet been approved by the Council of Ministers. The creation of a special jurisdiction in the district courts remains pending and the re-announcement of the ESTIA government-backed mortgage relief scheme appears to have been nothing more than yet another government announcement.

In other words, at a time when successive interest rate hikes are squeezing thousands of borrowers, the government has not provided any comprehensive solutions to the issue of foreclosures, but it is also not even fulfilling what it itself had promised.

In light of this situation, AKEL will submit a bill proposal in Parliament for a targeted suspension of foreclosures, unless the government ensures the extension of the suspension while at the same time submitting a comprehensive framework of measures.