Parliament approves legislation to safeguard borrowers, enhancing foreclosure framework

The Parliament on Friday cast a protective net for borrowers by approving a package of legislation aimed at strengthening the legal framework for foreclosures.

The bills include provisions for expanding the powers of the Financial Ombudsman and establishing Special Jurisdiction within the Provincial Court. This new jurisdiction will cater to citizens facing foreclosure on properties valued up to €350,000, securing their primary residence.

Legislative proposals which enhance borrower rights and safeguard those at risk of losing their assets were also greenlit.

The legislation for Special Jurisdiction garnered support from 35 members of parliament, while three members of Edek voted against it. Fifteen members of Akel abstained. Edek’s president, Marinos Sizopoulos, opposed the bill, citing non-compliance with the party’s conditions and emphasized that accountability would become clear in the future.

Regarding the legislation for the Financial Ombudsman and the two coalition proposals, 38 members of parliament voted in favour, with Akel members abstaining.

Earlier, proposed amendments by Akel, the Green Party, and Edek were rejected. Additionally, Akel’s request for urgent consideration of a law proposal aiming to circumvent foreclosure by securing a judicial order was dismissed.

Finally, five bills related to the Rent Against Installment Scheme were unanimously approved, providing tax exemptions.

(File photo)