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Eurogroup issues foreclosures’ warning

Dutch Finance Minister and Eurogroup chairman Jeroen Dijsselbloem talks to German Finance Minister Wolfgang Schaeuble (right) during the euro zone finance ministers meeting in Brussels

The suspension of the foreclosures law by opposition parties was the obstacle to Cyprus’ bailout programme, Eurogroup President Jeroen Dijsselbloem said on Monday
“Banks must return to their normal function, to give loans, this is an important element of the system,” he said.
Economic and Financial Affairs Commissionaire Pierre Moscovici asked for the law to be implemented with no further delay.
“This is very important for the Cypriot economy,” he said.
Moscovici said all involved must put an end to the uncertainty and open the way to the financial sector so that Cyprus can return to growth and job creation.
The foreclosures law has been suspended until March by opposition parties, which have the majority in parliament, ostensibly to protect vulnerable groups until the insolvency framework came to force.
Observers suggested that opposition parties were protecting big borrowers, mostly developers, and not the vulnerable.
The government said the suspension was unnecessary and only served in damaging the island’s credibility, since the regulations for the foreclosures were not in place and they could not go ahead.
In response, international lenders have interrupted the bailout programme until Cyprus complies with the terms it had agreed in March 2013.
Finance Minister Harris Georgiades told his Eurogroup colleagues that Cyprus was determined to continue efforts to reform and consolidate the economy.
“It is the only way that will protect our economy from new dangers and will boost the prospect for recovery, growth, and stability,” he said in a statement. “Without a doubt, circumstances called for serious handling and responsible choices on everyone’s behalf.”

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