Specific measures expected on foreclosures

Government will announce a package of measures on foreclosures to ensure the credibility of the country and to protect its vulnerable residents, President Nikos Christodoulides said on Tuesday.

He said the finance minister will inform MPs in writing about the measures on Wednesday.

Cyprus’ credibility is a key ingredient to attract quality investments so the government is approaching the issue of foreclosures with seriousness, Christodoulides added as he was attending the Invest Cyprus International Investment Awards ceremony on Tuesday evening.

Asked about the issue of foreclosures and how the government is dealing with the intention of political forces to vote for a proposal to suspend them through a court order, the president said this will only create problems.

“Any action or decision by some to lead to a blanket ban on divestment will only succeed in creating problems in the economy of our country. And when a country’s economy has problems, your ability to have social policy is limited, you cannot develop housing policy, which is of interest to our young people and much more.”

He noted that the universal termination of foreclosures is something that only favours strategic defaulters who precisely exploit such behaviour and does not provide a solution to the problem.

Instead, Christodoulides said the “very specific proposals” of the government aim to ensure “on the one hand the credibility of our country but, because this is our priority, to protect our vulnerable compatriots and not the strategic defaulters”.

MPs have submitted four legislative proposals on foreclosures, despite reservations from the government and the central bank.