Yesterday, the Minister of Finance, Makis Keravnos, submitted seven government measures to the Parliament aimed at addressing issues related to non-performing loans. These measures were presented in a letter addressed to the President of the Parliament, Annita Dimitriou. The Minister underscored the framework's role in providing a safety net for vulnerable groups.

The letter, obtained by the Cyprus News Agency, informed the Parliament about the approval of an amendment to the Courts Law (special jurisdiction). This amendment focuses on regulating the adjudication process within the District Courts for cases involving disputes between borrowers and creditors regarding credit facilities secured by primary residences valued up to €350,000.

The government emphasizes its commitment to strengthening and enhancing two legislative proposals that were initially submitted by parliamentary parties. Specifically, with regard to AKEL's proposal concerning the pricing method in voluntary property exchange against debt, a revised text has been proposed, incorporating recommendations from the Legal Service to ensure its constitutionality. It is worth noting that cases related to rent against installment are excluded from this proposal.

Regarding the proposal put forth by DISY and DIKO, which aims to provide extensive information during the auction process, the government has introduced additional obligations. Mortgage lenders are now required to declare the dates of letter dispatches to borrowers in accordance with the Code of Conduct for Credit Institutions, thereby demonstrating compliance with the Code. Furthermore, a provision has been included that mandates mortgage lenders, in cases involving loans secured by primary residences valued up to €250,000, to accompany the auction process letter with a sworn statement from a legal auditor or office confirming the debt amount. The cost of certification will be borne by the mortgage lender.

Meanwhile, the Minister of Finance has provided an update on the strengthened protection framework through the mortgage-to-rent scheme, which has received approval from the European Commission. Today, the decision regarding this plan will be officially published. Furthermore, the Minister states that the plan is set to be approved in the upcoming Council of Ministers session, incorporating the "standard modifications" introduced by the Commission.

This plan, according to the Ministry of Finance, offers a fair and definitive solution to address the challenges faced by vulnerable population groups who are unable to repay loans secured by primary residences valued up to €250,000 at market prices. Importantly, it enables these individuals to retain ownership of their primary residences.

Additionally, Makis Keravnos highlights that the plan establishes clear obligations for non-viable borrowers participating in the ESTIA and OIKIA schemes, effectively averting the possibility of property foreclosure.

The letter also emphasizes that the government has taken proactive steps to strengthen the personnel of the Single Adjudicatory Body for Financial Disputes (Financial Ombudsman). Moreover, Banks and Credit Acquiring and Management Companies have made the decision to suspend property auctions involving primary residences valued up to €350,000 until the end of October.

The Minister of Finance asserts that the overall framework being implemented is deemed satisfactory, ensuring the smooth functioning of the system and providing a safety net for vulnerable groups. He expresses willingness to present a comprehensive breakdown of the measures and the rationale behind them, underscoring the importance of avoiding any further differentiation or weakening that could undermine the integrity of the foreclosure framework as a whole.