Cyprus Mail
Business Cyprus

Foreclosures bills unconstitutional: Supreme Court

The Supreme Court

The island’s Supreme Court on Friday ruled as unconstitutional four bills passed by opposition parties to limit the scope of a law on foreclosures.

The bills, which threatened to derail Cyprus’ bailout adjustment programme, had been referred to the court by President Nicos Anastasiades.

The court’s decision was unanimous

Approval of the bills by parliament prompted the so-called Troika (IMF, EU, ECB) of international lenders to withhold the next tranche of bailout assistance because the bills violated the terms of Cyprus’ bailout agreement.

Under a €10 billion bailout agreement, Cyprus had to introduce effective legislation on foreclosures of mortgaged properties.

The IMF said it was in close contact with the Cypriot authorities, however the Troika has not yet set a date for the return of its mission to Cyprus pending the Supreme Court ruling.

“The IMF team and our partners ended the fifth review of the program at the end of July. Since then we are urging the authorities to further strengthen the legislative package on foreclosures to ensure that the process is effective, which we believe will help Cyprus with the high level of non-performing loans, restart flowing of bank credit and return to growth” IMF Spokesman Gerry Rice said. “A legislative package consistent with these goals is needed for the conclusion of that fifth review of the program.”

“We are aware that proposed changes to the foreclosure process are currently with the Supreme Court. So, we remain in close contact with the supreme authorities on this issue” he said, adding however that “I don’t have anything now on the return of the mission.”

 

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