Foreclosure

“We are putting a shield of protection around borrowers against abusive practices,” says Skrekas – See in detail the fines imposed on the three major servicers

Finance Minister Kostis Hatzidakis has announced that enforcement actions on movable or immovable property for natural persons and businesses affected by the heavy rains, floods and landslides in September in the region of Thessaly in central Greece are suspended for six months.

As the year comes to a close, it seems likely that the freeze on foreclosures on primary homes in Cyprus valued at up to 350,000 euros will be extended.

The Cyprus Parliament voted against two non-government bills about borrowers' rights last Thursday, which disregarded warnings from the government and the Central Bank about potential threats to the stability of the financial sector.

A significant mobilization by the Cypriot government and the Central Bank of Cyprus this week regarding the framework of foreclosures bore fruit. It primarily aimed to withdraw the "problematic" proposal that, according to the state and banks, would have negative consequences for the Cypriot economy.

Cyprus is heading toward suspending first-residence property foreclosures up to 350,000 euros by end-October.

This intermediate solution is seen as a compromise, allowing either the government, the Central Bank of Cyprus, or both to come up with proposals that will effectively address the issue of nonperforming loans.

The yearly publication of the list containing the major debtors to the Greek state, which named those with debts exceeding 150,000 euros, was implemented as a measure to discourage tax evasion and delinquent payments.

The groundwork for the establishment of a specialized jurisdiction court in Cyprus, which will exclusively handle issues related to primary residence foreclosures, will be laid on Thursday.

The Finance Ministry of Cyprus has stressed the importance of having stable legislation regulating out-of-court auctions in tandem with an effective insolvency framework in order to achieve a reduction of bad loans.

Cyprus' Finance Ministry is considering possible actions to tackle nonperforming loans and is examining a set of measures aiming to address the issue, Finance Minister Makis Keravnos said in a statement on Friday, calling on banks and servicers to refrain from foreclosures on primary residences held by vulnerable borrowers.