Cyprus Mail
Business

Moral hazards in banking may prove costly for Cyprus, DISY lawmaker warns

By Stelios Orphanides

DIKO refuses to budge on its proposal to grant borrowers the right to buy a loan before the lender sells it to a third party, prompting a DISY deputy to warn that mixing economic policy with social policy could make the law on the sales of loans ineffective.

“As DISY we acknowledge the moral hazard and we are concerned,” lawmaker and economist Marios Mavrides said. “But since we have to pass this law, as it is the case across Europe, we can’t do otherwise, we have to pass it. The sale and securitisation of loans is uniform across Europe”.



Related posts

Switzerland first to put coronavirus contact-tracing apps to use

Andrew Rosenbaum

As cabinet ratifies EastMed, global producers are struggling

Andrew Rosenbaum

Cyprus’ general government balance in Jan–Apr turns negative due to Covid-19

Source: Cyprus News Agency

Recovery plan heralds more integrated EU, say analysts

Andrew Rosenbaum

Cyprus restart plan well-received by economists

Andrew Rosenbaum

Central Bank: all previous projections ‘upside down’, expect ‘serious recession’

Source: Cyprus News Agency