The adopted law on compulsory property seizure was voted on this week | Cyprus Mail

The authorities are considering bills to provide additional protections for vulnerable borrowers who are on the verge of losing their homes. These laws are expected to be presented for approval to the chamber next week.

The First Law

It provides that the Supreme Court will have the authority to appoint judges to hear cases where borrowers challenge the procedures for issuing judgments on the confiscation of their property.

Second law

The Financial Ombudsman is allowed to exercise extended jurisdiction. Properties secured by a mortgage, valued at less than 350,000 euros, are considered suitable for such judicial extra-procedures.

On Monday, in parliament, the Ministry of Finance proposed its amendment - if a case has already been referred to court, the plaintiff can submit a request for their case to also fall under the expedited procedure, provided it has not yet been submitted for consideration.

Parliamentarians suggested that the first law should include a provision clearly defining the maximum number of days to complete such court proceedings. However, their proposal was rejected by Georgos Panteli, the permanent secretary of the Ministry of Finance. Legislators can still include this provision in their amendments, which have been developed by the parties.

The Chair of the House of Representatives Finance Committee, Kristiana Erotokritou (Diko), welcomed the new government bills despite their shortcomings.

Andreas Kafkalias, a member of the Akel party, stated that the two government bills essentially change nothing. He believes that the legislation regulating confiscation is "still designed for banks."

Another idea being considered by lawmakers is the possibility of allowing mortgaged properties valued over 350,000 euros due to renovations to enter an extrajudicial process. However, government officials have expressed skepticism.

Stavros Papadouris from the Greens party proposed to raise the limit for appeals to the Financial Ombudsman from 350,000 euros to 500,000 euros. He also announced that one of the party's amendments, which will be put to a vote at the upcoming House meeting, will propose a ban on confiscations until January 31, 2024.