The Parliamentary Finance and Budget Committee met today, Monday, March 21, 2022, and discussed the following matters:
1.a. The Real Property (Possession, Registration and Valuation) (Amendment) (No. 3) Act, 2021.
(File No. 23.01.062.080-2021)
The Committee continued debate on the above bills, after deferring them to the full House, for the purpose of amending:
a. The Law on the Purchase of Credit Facilities and Related Matters, in order to establish a licensing and supervisory framework for credit facility management companies that enables such companies to access the banking data of the borrowers under their management, in compliance with the provisions of the General Data Protection Regulation, in order to assess their creditworthiness and provide them with viable restructuring solutions; and
b. the Real Property (Possession, Registration and Valuation) Law, so that the information that may be provided by the Director of the Department of Lands and Surveys to credit institutions, in accordance with applicable law, may henceforth also be provided to a legal entity that either holds credit facilities or manages credit facilities, under the provisions of the Credit Facilities Purchase and Related Matters Law.
In the course of the discussion, the Committee considered the revised text of the first bill that had been tabled before it at the previous meeting, on the basis of which an attempt was made to find a consensual arrangement, with the ultimate aim of referring it to plenary as soon as possible, given that these bills are a prerequisite, based on the Government's commitments, for the disbursement of the first tranche of the Recovery and Resilience Plan. In the revised Bill, amendments have been introduced concerning, inter alia, the definition of the term "administrator" as defined in the relevant Directive, as well as provisions that do not allow credit facility administrators and credit purchase companies to access data held in the ARTEMIS database without the express consent of the affected persons.
According to the spokesperson of the Ministry of Finance, the Bill as amended does not differentiate the rights and obligations of borrowers
The Committee decided to take a position on the bills at its next meeting, with a view to forwarding them to the full House on 31 March 2022 for a final decision.
2.a. The operation of the Cyprus Asset Management Company (KEDIPES), the government's decisions on its transformation and how these affect public finances, borrowers, other banks and employees of KEDIPES.
(Self-investigation on the recommendation of Mr. Aristos Damianos, Mr. Andreas Kavkalias, Mr. Christos Christofidis and Mr. Alekos Tryfonidis)
(File No. 23.04.038.1097-2021)
.The lengthy procedures, difficulties and problems faced by borrowers at the stage of considering loan restructuring requests and the possibility of abuse by credit acquisition companies of their dominant position in violation of the provisions of the Credit Facilities Purchase and Related Matters Law.
(Self-investigation following the recommendation of Mr. Panikos Leonidou and Ms. Christiana Erotokritou)
(File No. 23.04.039.036-2022)
c.The procedures of KEDIPES regarding the restructuring and/or the agreements for the repayment of the borrowers' loan contracts and the potential unequal treatment of the borrowers.
(Self-examination following the recommendation of Mr Panikos Leonidou and Mr Ilias Mirianthous)
(File No. 23.04.039.039.068-2022)
The Commission began the discussion of the above-mentioned matters registered under the ex officio procedure, in the context of which it was informed of issues concerning the operation of KEDIPES and the credit redemption companies, the management of non-performing loans and their restructuring, as well as the ESTIA, OIKIA and Central Equal Burden Sharing Agency projects, which aim to protect first homes and mitigate the problem of non-performing loans. During the discussion, a number of questions were raised and evidence was sought on various individual issues. There was also an exchange of views on, inter alia, the process and results of loan restructuring, the status of loans underwritten both by companies and by KEDIPES, the payroll and voluntary exit plan of KEDIPES, the implementation of the Central Bank of Cyprus' Arrears Management Directive, as well as the criteria and procedures according to which write-offs of outstanding amounts in relation to loans are carried out.
The Commission decided to monitor these issues and to review them in due course.
3.The Uniform Financial Out-of-Court Dispute Resolution Agency Budget Act of 2022.
(File No.: 23.01.063.050-2022)
The Committee continued discussion of the above bill, the purpose of which is to authorize payment from the Single Agency for the Out-of-Court Resolution of Financial Disputes Fund in the amount of €1,199,183 for the fiscal year ending December 31, 2022.
During the discussion it was informed that, following a meeting held at the Ministry of Finance on issues related to the budget of the Entity and in particular the reduction of specific funds, it was agreed that the competent ministry would review the needs that may arise during its implementation and, if necessary, to include increased appropriations in a relevant supplementary budget to be submitted. The representatives of the Agency, on the basis of the above agreement, recommended that this budget be forwarded for adoption as originally submitted and the Commission decided to take a position on it at its next meeting.
4.The Digital Security Authority Budget Act of 2022.
(File No. 23.01.063.063-2022)
Discussion of this item was postponed and consideration will be rescheduled.
5.The Income Tax (Tax Dispute Resolution Mechanisms in the European Union) (Amendment) Regulations, 2022.
(Ref. No. 23.03.059.012-2022)
The discussion of this item was postponed and its consideration will be rescheduled.
6.Releases of funds and exceptions to the prohibition on filling vacant posts.
The Committee considered a number of requests for releases of funds and exceptions to the prohibition on filling vacant posts.
The releases of funds concern. the Ministry of the Interior,
c. the Office of the Data Protection Commissioner,
d. the Ministry of Agriculture, Rural Development and the Environment,
e. the Ministry of Defence,
f. the Judicial Service,
g. the Ministry of Energy, Trade and Industry,
h. the Ministry of Justice and Public Order.
The exceptions to the prohibition on filling vacancies relate to:
a. the Ministry of Transport, Communications and Works,
b. the Ministry of Energy, Trade and Industry,
c. the Cyprus Ports Authority,
d. the Ministry of Agriculture, Rural Development and Environment,
e. the Cyprus Army.
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Secretariat of the Parliamentary Committee on Finance and Budget
Email: parliamentary-committees@parliament.cy
(EC)
Contents of this article including associated images are owned by PIO
Views & opinions expressed are those of the author and/or PIO
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