The Association for the Protection of Borrowers (Syprodat) this week said that the government should immediately implement a new mechanism or modify any existing frameworks in order to resolve the issue of foreclosures and restructurings.

Doing such a thing, the association explained, would help to drastically reduce non-performing loans (NPLs), increase productivity and stimulate the economy, to the benefit of both banks and borrowers.

The association noted that the statutory body of the Financial Commissioner has core weaknesses because its decisions are not binding and its term of office lasts for five years, with the prospect of renewal for another five years.

With this in mind, the association stated that “the professionalism and conscientiousness, as well as the hard work of the specific Financial Commissioner Pavlos Ioannou, are accepted by everyone”.

The association recommended that a legislative way be found so that the term of office of the Financial Commissioner is comparable to that of the Judges of the Supreme Court and to make the commissioner’s decisions legally binding.

Other recommendations include any involved party having a right of appeal to the Supreme Court or to some other body whose decision will guarantee the administration of justice to the satisfaction of both parties, in other words, the bank and the borrowers.

“Recourse to the Financial Commissioner in the new form of resolution that we are proposing, something which will suspend the right of banks to proceed with private foreclosures, without however affecting the timelines of the existing legislation,” the association said.

Finally, the association stated that banks should be forced to comply with the Unfair Terms Act to avoid time and money-consuming litigation.

The number of bad checks identified and registered in Cyprus in February 2023 rose to 38, according to a report published this week by the Central Bank of Cyprus (CBC).

According to the report, the value of bad checks increased to €101,065, compared to €59,817 in January 2023 (23 checks) and €93,811 (26 checks) in the corresponding month of 2022.

During the first two months of the year, a total of 61 checks were identified and registered, a number that is the same as in the corresponding period of last year, with the value of these checks amounting to €160,882, significantly reduced compared to €243,369 in the first two months of 2022.

In February, a total of 37 persons were registered in the relevant bad check list, of which 14 are legal persons, 4 natural persons and 19 natural persons who control legal persons.

Finally, 20 persons were registered in the preliminary list in February, of which 12 are legal persons and 8 are natural persons.

The Cyprus Stock Exchange (CSE) ended Tuesday, March 7 with losses.

The general Cyprus Stock Market Index was at 110.05 points at 14:08 during the day, reflecting a decrease of 0.47 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 66.51 points, representing a drop of 0.48 per cent.

The total value of transactions came up to €170,047.

In terms of the sub-indexes, the main and investment firm indexes rose by 0.61 per cent and 1.39 per cent respectively.

The alternative index fell by 0.21 per cent, while the hotel index remained unchanged.

The biggest investment interest was attracted by the Bank of Cyprus (+1.89 per cent), Hellenic Bank (-0.29 per cent), Demetra Holdings (+1.82 per cent), Logicom (-1.83 per cent), and Vassiliko Cement Works Public Company (+1.52 per cent).