The satisfaction that the new framework regarding the operation of credit acquisition and credit management companies has included provisions and recommendations put forward by the Finance Committee of the Parliament so that we have a much better framework that ensures the well-intentioned interests of people who have transactions with the acquisition and credit management companies, expressed the President of the Finance Committee, Christiana Erotokritou, after the Committee session.
The Commission discussed on Monday seven harmonization bills for credit managers, with which the Republic of Cyprus would have to harmonize by 29 December 2023, as a result of which it has received a letter of warning from the European Commission on 24 January 2024.
< p>In statements after the session, the President of the Finance Committee, Christiana Erotokritou, after noting that the Committee has planned its work in such a way that there is no pending matter that causes any anomaly in the economy of the country, she assured that “no procedure concerning violation of the Cypriot state vis-à-vis its European obligations is not going to be taken against the Republic of Cyprus since despite the fact that we had a late submission of harmonizing bills, especially those concerning and governing the operation of credit acquisition companies, we will not miss any date or be late so that to risk the imposition of any fine”.
“We have done it in the past, we have avoided the imposition of fines, we have satisfied those imposed by European legislation and European directives and we will do the same this time,” he added.
AKEL MP Andreas Kavkalias said that while there is “one European directive for credit buyers and managers, in Cyprus we are discussing two legislative frameworks”, concerning “the existing one and a new one included in seven bills, which the regulations they will only concern any transfers that occur after the adoption of the new framework”.
“Any purchases, sales, or restructurings of old non-performing loans that are outside the banking system will continue to be governed by the old regime, which it does not ensure safe internal control, accountability and fair treatment of borrowers,” he added.
He said the deadline for harmonization has passed and we are one step away from starting infringement proceedings.”
Mr. Kavkalias said that “the Republic of Cyprus is also at risk of sanctions due to ineffective harmonization with EU directives concerning the protection of borrowers from abusive clauses, unfair practices and due to ineffective recourse to legal remedies”.
Dipa MP – Citizens Cooperation Alekos Tryfonidis said that the harmonizing bills “are definitely clearly improved with the recommendations and opinions of the members of the Committee”.
He added, however, that they expect “some serious questions to be answered concerning the viability of the borrowers such as why the loan package should also include serviced loans that citizens have and which will suddenly be in an acquisition company located in an EU member country”.
Mr. Tryfonidis said that “a second serious issue is that of guarantors, which is included in the provisions of the bills and is not harmonized in relation to what is happening in the EU”.
