The Plenary of the Parliament unanimously approved the budget of the Single Body for the Extrajudicial Settlement of Financial Disputes for 2023, with MPs arguing over which party has most strengthened the institution of the Financial Ombudsman and others calling for its independence.
The 2023 budget of the Single Body for the Extrajudicial Settlement of Financial Disputes (SBIFSD) is marginally in deficit, projecting total expenditure of €1,154,280 and revenue of €1,084,280, which is down 8.7% compared to the year 2022. The revenue of the HIFCF will mainly come from the fixed annual contribution paid by financial firms to the entity (€693,309), from individual fees paid for submitting complaints, applications and grievances (€24.000), charges levied on the operators involved in cases where a decision on complaints lodged is taken against them (€140,000) and other revenue (€50,000).
The budgeted deficit of €70,000 will be covered by the cash resources of the HFCAHF.
During the debate, DIKO MP Christiana Erotokritou urgently raised the need for independence of the Financial Ombudsman's budget, but also the need to strengthen the institution, which she said is the only protection that bona fide borrowers have at the moment.
DPA - Co-operation MP Alekos Tryfonidis also stressed the need for the full independence of the Commissioner, describing his presence as essential to bring balance between the relations between borrowers, banks and credit purchase companies. He added that for the institution to be truly independent, the state should pay its budget and there should be a proper structure and its decisions should be binding on the parties involved. He added that if banks have to pay an amount, they should pay the state and not depend on them for the Commissioner's salary.
DISY MP Onoufrios Koula said that the institution of the Financial Commissioner is an excellent institution "that we have activated". He said that he personally met Paul Ioannou when he was wandering around the Ministry of Finance without an office and provided him with an office. He said the then Minister of Finance in 2015 strengthened the institution significantly. He added that the institution has no serious weaknesses and helped thousands of serious borrowers. Any other support needed, he said, would be given. He expressed the view that banks should continue to pay the cost of the institution's operation, since the Commissioner is examining their mistakes.
AKEL MP Andreas Kavkalias advocated strengthening the institution and the dispute resolution mechanisms, while referring to unfulfilled commitments on the issue by the government. He said that while there are objections regarding the Hestia Plan, at the moment banks and credit redemption agencies are proceeding with divestments, the commissioner said. He also said that loans were sold to credit acquisition companies and while they were in the Hestia Plan, the companies are not complying with the conditions of the Hestia Plan and what they have committed to.
DIKO MP Pavlos Mylonas said that DIKO also supported the institution and asked how many of the Financial Commissioner's reports were taken into account and adopted by the banks.
MP of the Ecologist Movement Stavros Papadouris said that in 2015 the Commissioner was returning to the Ministry of Finance without an office and slowly he managed to set up the institution and turned around the impression of the people a bit, who treated him with some scepticism because of the funding from the banks. He added that there is a way to otherwise subsidise the institution's budget through the decisions it makes.
AKEL MP Aristos Damianou said that while the party was claiming in Parliament the enforceability of the commissioner's decisions, "the two political Siamese" DIKO and DISY were against them. She said that the alliance with DISY also explains the choice that DIKO is making today for the Presidential elections.
In response, Ms Erotokritou said that they will cooperate with all political forces available to rescue the Cypriot economy from short-sightedness and policies that are anchored in the ideologies of the past.
DIKO MP Zacharias Koulias said what Koulas said demonstrates the intention of those who did not give office to the Financial Commissioner. He added that while Co-operative accepted the Commissioner's decision on the overdraft case, other banks did not accept it and even the Housing Finance Corporation copied the banks' system.
DIKO MP Panicos Leonidou referred to the law proposal submitted by the DIKO President for specific actions on over-indebtedness that strengthened the institution, and said that the Commissioner himself said that the DIKO proposal gave him the power to make the decisions he takes.
Source: CNA
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