Cyprus passes controversial foreclosure bill
Nicos Anastasiades, President of Cyprus Photo: EPP Official
The island's government was required to approve the bill by the end of last week, but after weeks of debating, the deadline looked set to be missed, which would see the troika of lenders withhold the next €436 million installment of the country's much-needed €10 billion euro loan.
An emergency vote was therefore held on Saturday and the bill was ultimately voted in by 47 members of parliament, with seven against and one abstention.
The bill streamlines the foreclosure procedure, preventing the process from being delayed so that it takes months rather than years to seize, value and auction properties.
The decision came with the caveat that it would only be implemented once a seperate insolvency bill is passed, at the latest on 1st January 2015.
The amendments offered by the insolvency bill are designed to protect individuals from a potential wave of fast-paced foreclosures, with some worried that even the framework for that was "vague" and could still be used against homeowners in debt anyway.
President Nicos Anastasiades said yesterday that he would "review very seriously the amendments achieved in the separate bills and will fully respect everyone’s wish to protect vulnerable groups", although he also added that they "in essence do not alter the philosophy of the bill".
"The troika had already rejected these suggestions when put before them by the House," notes Cyprus Property News, suggesting that the additional, second bill could still be returned to the House for another review.
While the President has the right to do this, though, Opposition AKEL MP Yiannos Lamaris told the press that such an act would "cause a chasm" in the country's society.
"What this country needs today is calm and dialogue, not a political crisis," he cautioned.
The next tranche of the island's bailout is due to be handed out in late September, with a Eurogroup meeting at the end of this week expected to decide whether to disburse the funds.