President meets bank association delegation to discuss range of issues

A new plan is expected in the coming days to protect the primary home of people belonging to vulnerable groups, the government said on Friday.

The plan will come to reinforce the framework already in place to safeguard vulnerable households, the director of the president’s office Nicolas Papadopoulos said after the President Nikos Christodoulides met a delegation of the bank association.

He noted that this framework must also enable the banks to receive what the borrowers, especially the defaulters, owe, to ensure a sound financial system.

The House finance committee is expected to discuss the various proposals on foreclosures the Monday after the next.

The president also exchanged views with the delegation on how to make Cyprus’ banking system stronger and more reliable for the benefit of the country’s development, the economy and attracting investment.

“A strong and reliable financial system can give our country so many benefits,” Papadopoulos said.

He noted than in recent years, the state has made leaps to that end. The government believes that even in the present circumstances, the reliability of our financial system is key for attracting investment and to promote for economic growth, it was added.

The government also welcomed the fact that banks have responded to the call by the finance minister to absorb part of the increase in lending rates for consistent borrowers and also to increase deposit rates.

For his part, the senior director of the bank association Michalis Kronides said they had a constructive meeting with the president whom they assured they will be in close cooperation for the benefit of the Cypriot economy.

Commenting on the issue of foreclosures, he expressed hope that there will be a constructive dialogue with the finance committee to come up with a legal framework, “which will be in the interest of the borrowers and in the interest of the banks”.

But he noted that there are risks concerning the decisions to be taken since “there needs to be a stability in the legal framework”.

A relevant legal framework was implemented in 2019. Then from 2020 onwards because of the pandemic, foreclosures were suspended so “we basically did not let the framework work”.

Apart from the issue of foreclosures, the hot topic of sanctions on Cypriot companies was also discussed.