Parliament on Friday approved two government bills on foreclosures, along with 10 bills submitted by political parties.
The government bills strengthen the role of the Financial Ombudsman in loan‑restructuring procedures by upgrading the existing mechanism for debt verification and linking it directly to the restructuring process. In addition, the Ombudsman’s decisions will now be binding in disputes involving amounts up to €20,000.
Bills passed by parties
Among the proposals approved was a bill submitted by DISY MP Averof Neofytou, co‑signed by other DISY MPs and MPs from other parties, which aims to protect and release guarantors who find themselves trapped in foreclosure cases.
MPs also passed a DIKO proposal to appoint special judges at the District Courts who will handle foreclosure‑related cases exclusively, with the aim of speeding up rulings.
At the same time, AKEL and the Greens succeeded in passing a bill that restores access to justice by suspending foreclosures in cases involving unlawful charges or abusive contract terms.
Just before the vote, AKEL parliamentary spokesperson Giorgos Loukaides asked for the party’s separate proposal amending the Immovable Property (Transfer and Mortgage) Law to be postponed and brought back before the new Parliament.
Parliament additionally approved the Greens’ bill on the insolvency framework.
Also adopted was an ELAM proposal amending the Consumer Credit for Residential Property Law, as well as two joint proposals by AKEL, DIKO and DIPA to amend both the Immovable Property (Transfer and Mortgage) Law and the Interest Rate Liberalisation and Related Matters Law.
Finally, MPs approved a DIPA proposal to suspend foreclosures, and a DIKO proposal amending the Immovable Property (Transfer and Mortgage) Law.