Finance Dept.: The three-month suspension of primary residence auctions was discussed

The proposal concerns the main residence up to 350 thousand euros

first home

The three-month targeted suspension of home and business home auctions was discussed at the extraordinary session of the Parliamentary Finance Committee, which met on Tuesday. The proposal concerns the main residence up to 350 thousand euros, the professional roof with an annual turnover of up to 750 thousand euros and plots of land worth up to 100 thousand euros.

Sotiris Ioannou, ELAM Member of Parliament, reported that in April 2021 the Finance Committee had said that there would be a discussion regarding the package of proposals concerning non-performing loans (NPLs), but no discussion has yet started on the sales, hence the filing of the motion for suspension of sales. He also noted that the banks are proceeding abusively and completely illegally in the sale of first homes, adding that his party's position is to discuss the proposal as an urgent matter in the Plenary next Thursday.

Answering a question, Mr. Ioannou explained that the Finance Committee decided by majority vote that the debate is not over and will therefore continue in September. "We will go with a new law proposal with effect until October 31 and we will ask the Plenary to discuss it urgently, as was done in other cases," he stressed. We have not seen so far any attempt to find a consensual solution by the Government, he concluded.

Alekos Tryfonidis, DIPA Member of Parliament, stated that the legislative framework is more favorable for banks, redemption funds and loan management companies, indicating that the practices followed by these institutions are onerous for borrowers. He also noted that in practice there is no consensus between the agencies and the borrower-guarantors, so the absence of any action by the executive power leaves us no other room than to submit this law proposal. "We are waiting for the actions of the Government and the Ministry of Finance in consultation with the banks and management companies to bring us a binding statement for a three-month suspension of sales. The three months do not greatly affect the entire financial situation," he added.

Mr. Tryfonidis repeated his appeal to the Government to consult with the banks and management companies, so that the Parliament can be given room to discuss in September the 13 proposals for a law that have been pending for a year. Responding to a journalist's question, he said that some people should justify their negative attitude towards the proposal. "We are asking for consensual solutions, because the issue is of utmost importance for the entire Cypriot people," he stressed.

Stavros Papadouris, Member of Parliament for the Movement of Environmentalists - Citizens' Cooperation, stated that some parties do not share the urgency of the case, adding that the response of the Ministry of Finance (YPOIK) and the Central Bank (CBC) for a three-month suspension of auctions is expected by Wednesday. Otherwise, he said, a bill will be resubmitted to be taken as an urgent matter to Thursday's Plenary. Asked about the attitude of the Ministry of the Interior and the CBC, he said that they understand that there is a major issue with the auctions, but they said that the auctions only concern fields, which does not exist, because the Parliament also receives messages about first homes and small commercial buildings. "Everyone's exhortation is to resolve the matter consensually from all sides," he pointed out.

In addition, he noted that for a year and a half there has been the issue of the state agency (rent vs installment), which will come at the end of the year, and wondered who protects the vulnerable groups and those who are not strategic defaulters. Asked about the parties that will support the proposal to suspend the auctions, Mr. Papadouris mentioned the Environmentalists Movement - Citizens' Cooperation, EDEK, DIPA, ELAM, while AKEL has not yet responded. Last year, he indicated, due to the pandemic, there was an agreement with the Association of Banks not to proceed with divestments, which was achieved twice in the past. "It is imperative that this protection option be available now for those who are entitled to it," he concluded.

Source: KYPE