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Exit for guarantor data

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The thriller of fulfilling the last 14 prerequisite for the disbursement of the first tranche by the European Recovery Mechanism seems to be coming to an end, with the government and the majority of the members of the Finance Committee reaching a solution that will not lead to mass access of loan management companies in the data of guarantors, related parties and collateral providers in non-performing loans kept in the “Artemis” database and in the Land Registry.

According to the solution promoted, loan management companies will be able to submit a reasoned request to the credit companies (which have purchased the loans from the banks) for access to the guarantor data. In addition, the guarantor will have the opportunity to appeal to the court for non-provision of data. The filing of the objection will result in the non-provision of the data while the legal process is in progress, ie from the first instance.

The second regulation does not lead to paralysis of the procedure as the “Law on the Protection of a Certain Category of Guarantors” for cases before the courts (for the issuance of a decree suspending the execution of a court decision against the guarantor) requires the disclosure of financial data. >

Practically the whole issue primarily concerns KEDIPES and Altamira access to the data of the guarantors. The practice of collecting signatures through workplaces and friendly/family environments was widespread (if not the established practice) in the former Co-operation, whose MEDs now belong to KEDIPES.

The above two regulations – and especially the first one – satisfy the basic request raised by all the opposition parties regarding the access of the loan management companies to the data of thousands of citizens of Cyprus.

“Half of Cyprus is a guarantor and it is not possible for an individual to have access to this information. “The important thing is that there is no uncontrolled access and the requirement to request access to the data of the guarantors will allow the tracking of the requests and the detection of abusive practices”, the MP of the Ecologists' Movement tells “P” & # 8211; Citizens' Cooperation, member of the Finance Committee, Stavros Papadouris.

At the next meeting of the Finance Committee, the text of the amendment of the bills will be examined, which will be technically processed by the Legal Service.

The amendment does not appear to conflict with the objective of the 14th prerequisite for improving the non-performing loan management environment.

The closure of the last pending case will allow the disbursement of approximately 97 million euros, from the European Recovery Mechanism and mainly removes the risk of not receiving a total funding of 1.2 billion euros that Cyprus has secured from the Recovery and Durability Mechanism. The Regulation of the Recovery and Durability Mechanism is stricter than the procedure of the memorandum that allowed the transfer of prerequisites in subsequent installments.

Source: politis.com.cy

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