The government bundle of bills on foreclosures were passed into law on Friday, aimed at fast-tracking foreclosure proceedings and giving expanded powers to the financial ombudsman.
After hours of wrangling, deputies voted in favour of the laws with a majority of hands, while amendments submitted by Akel, Edek and the Green Party seeking to strengthen the protection against foreclosures on primary residences fell through.
One of the laws authorises the Supreme Court to appoint judges that can fast-track cases where mortgagors challenge foreclosure proceedings against their property. It relates to primary residences with a value of up to €350,000, as well as small business premises.
The law was passed by 35 votes in favour, three against from Edek and 15 abstentions from Akel.
A separate law was also voted through, broadening the scope of the financial ombudsman’s powers to appoint a mediator who can work towards restructuring loans.
The ombudsman will mediate for cases concerning primary residences up to €350,000 and commercial properties up to €750,000. There were 38 MPs who voted in favour, three opposing it from Edek and Akel’s 15 abstentions.
Another two bills from Diko, Edek and Depa were voted into law which regulate a debtor’s rights to submit a complaint against banks to the financial ombudsman.
The complain concerns primary residences, where if the financial ombudsman rules in favour of the individuals, the foreclosures process is suspended, until the case goes to court.
Meanwhile, six laws were unanimously adopted which broaden the definition of the term restructuring to include the disposal and transfer of immovable property to the Cyprus Asset Management Company in the context of the implementation of the ‘mortgage to rent’ scheme.
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