Eleftheria Paizanou
The majority of Members of the Parliamentary Committee seeks to shield guarantors, collateral providers and related parties first, and then to pass bills that strengthen the legal framework for tackling the problem of red loans and improve their management. The same position is shared by the Financial Commissioner Pavlos Ioannou.
This protection is estimated to come through the amendment of the Ecologists, ELAM and DIPA, which restricts the access of non-performing loan management companies to the data of guarantors, collateral providers and related parties.
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Yesterday, members of the Parliamentary Finance Committee discussed the two bills that create a framework for licensing and supervising non-performing loan management companies and giving them access to the data of first-time borrowers, guarantors, collateral providers and their affiliates. borrowers, which are included in the ARTEMIS database, as well as the database of the Land Registry Department. The party amendment was also discussed, which abolishes the relevant provision of the bill “On the Purchase and Sale of Credit Facilities”. This amendment seems to gain a majority, as in addition to the Ecologists, ELAM and DIPA, it will be approved by AKEL MPs, while DIKO also seems to face it positively. It is worth noting that the two bills are part of the 14 milestones for the disbursement of the second installment, amounting to € 85 million, from the Recovery Fund in February.
The Commissioner broke out
At yesterday's meeting of the Committee, the Financial Commissioner Pavlos Ioannou spoke about the abuse of the rights of citizens who are connected with borrowers. In fact, he called on the Parliament to approve the two bills, after previously, as he said, the party amendment regarding the persons related to the borrowers, the guarantors or the collateral providers was approved. Mr. Ioannou also suggested that if it is not legally feasible to implement the amendment, it should be limited to guarantors and loan providers from the former Co-operation or the Housing Financing Organization. According to the Commissioner, the last eight years have shown a number of complaints submitted to the Out-of-Court Settlement Body that many guarantors of non-performing loans or other loans are victims of a series of illegalities by applying blatantly abusive clauses in guarantee contracts.
A spokesman for the Ministry of Finance said that the amendment changes the philosophy of the bill and puts credit management companies in a more difficult position than the current situation and calls into question the possibility of licensing and operating these companies. He also argued that the principle of equality is being violated, as loan management companies will have limited access rights in relation to credit institutions, while it also conflicts with the right of business. Answering a question whether the amendment will create a problem for KEDIPES, he noted that the company has acquired the loans of the former Cooperation, which can not be managed by itself based on its commitments, but through a loan manager, unlike other companies. . Concluding, he pointed out that any weakening and inefficient management of KEDIPES's loan portfolio also weakens the company's ability to repay the state aid received by the Cooperative.
DISY MP Savia Orfanidou expressed concern about the case of approval of the amendments, warning of negative effects on KEDIPES.
