The Parliamentary Committee on Finance today discussed a package of seven harmonization bills aimed at reducing the risks to the banking system and the need to resort to state support.
Cyprus, which did not comply with the relevant legislation in time, has received a warning letter from the competent EU institutions, while for two of them it risks significant fines.
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The bills aim to implement two directives and two EU regulations amending existing directives.
According to representatives of the Ministry of Finance who represented the Commission, the bills provide for banking institutions and investment firms to be better capitalized, to have more funds than loans, not to have excessively leveraged balance sheets, which should be balanced, while arrangements are foreseen on the basis of which they will be consolidated more effectively. As they mentioned, the bills reduce the risk of failure of the institutions and reduce the possibility of their support from the public sector.
It was also stated that the date of harmonization was 28 December 2020 and that on 3 February the Republic had received a warning letter for untimely harmonization with the acquis. A spokesman for the Legal Service said that two of the bills by 10 January 2020 are even more urgent, as the EU has launched an infringement process and reached a reasoned opinion and the Republic risks a fine of thousands of euros.
The Finance Committee asked the Ministry for a better and clearer presentation of the provisions of the specific bills in order to continue their examination, while it was stated that the two bills that are considered urgent will be promoted separately as a matter of priority.
Philenews / ΚΥΠΕ
