The effective handling of the problem arising from the delay in the completion of the procedures of the Hestia Plan[/QUOTE]
The effective handling of the problem arising from the delay in the completion of the procedures of the Hestia Plan, should, above all, arise from the State, says the Financial Commissioner, Pavlos Ioannou, in a briefing note, following the acceptance of his decisions by the Bank of Cyprus to cancel planned disposals pending an appeal for non-inclusion in the Hestias Plan.
In his note to borrower-consumers, the Commissioner states that he was informed by the Bank's General Management that he is proceeding immediately to cancel planned disposals after the content of his decisions on the matter was accepted by the Bank.
It also said that it issued the present information note 'because by its action the Bank, in effect, accepts the content of the Commissioner's decision' which, it said, is based on the reasoning of an 'important' relevant decision of the Nicosia District Court. The note to which the Commissioner refers, dated April 27, 2022, explains why it is illegal to activate the divestment procedure and to carry out divestments of a main residence pending an appeal for non-inclusion in the Hestia plan.
Mr. Ioannou, points out in today's briefing note that the long delay in issuing a decision on an objection for non-inclusion in the Hestia Plan, "creates serious management problems, both to our own fellow borrowers, who filed such objections, as well as to the banking system, due to the fact that it is not possible for them to proceed with a rational procedure for dealing with their claims against the concerned fellow citizens with non-performing loans, using the available means in a lawful manner."
He further said the State must, "without delay and as soon as possible, proceed with the completion of the proceedings of the Home Plan." Pending the full consideration of the objections, the Commissioner urged the State to take measures to prevent the sale of primary residences pending an objection to the Hestia Plan, such as the relevant decision of the Nicosia District Court, which, he said, ruled that such sales were illegal.
He also urged the State to take all appropriate measures to protect vulnerable groups who, for whatever reason, have been left out of the Plan. "Either because of failure to meet the conditions for inclusion in it or for all the other technical reasons why this important Plan has failed," it adds.
The Commissioner publicly expresses his thanks to the General Management of the Bank of Cyprus Public Company Ltd for the above action, which "contributes to the further creation of a climate of goodwill in the atmosphere of relations between citizens and the banking system and is obviously a consequence of the customer-centric approaches promoted by the Bank."
It also states that it expects that the same attitude towards its decisions on complaints of divestment, pending complaints of non-inclusion in the Focus Scheme, will be adopted by the Credit Acquisition Companies and other Licensed Credit Institutions.
"But in any case," he concludes, "the effective handling of the whole problem will, above all, have to arise from the State, on the basis of the actions I have already mentioned above."
Source: CNA
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