The first part of the discussion concerned the establishment and operation of the Single Body for the Out-of-Court Resolution of Financial Disputes
File photo.
The debate continued on Thursday in the Finance Committee, but also in the joint meeting of the Finance and Legal Committees that followed, on the government's bills regarding the expansion of the powers of the Financial Commissioner and the Law on Courts for adjudicating cases concerning the foreclosures, with committee members calling for a transparent and reliable safety net for borrowers.
The first part of the discussion concerned the establishment and operation of the Single Body for the Out-of-Court Resolution of Financial Disputes, with the Director General of the Ministry of Finance Giorgos Pantelis stating that the bill submitted by the Ministry of Finance allows a large portion of borrowers to appeal to the Financial Commissioner to exercise the right of mediation based on criteria, adding that there was broad acceptance of the ambition and aims of the Bill by those present during the previous session.
In response to a question from the President of the Commission and DIKO Member of Parliament Christianas Erotokritou if a provision could be included that would not allow the continuation of the sale in case of non-acceptance of the Financial Commissioner's decision by the creditor, Mr. Pantelis said that the bill in this its form does not prevent any divestment process, adding however that the suspension of the process would require an amendment to the Law on Transfers.
On the part of the committee members, DISY MP Haris Georgiadis asked the Ministry of Finance to confirm whether the scope of application of the law also includes terminated loans for a period of six months, while AKEL Member of Parliament Christos Christofidis conveyed AKEL's proposal to suspend the sale process until mediation is completed.
In response, the Director General of the Ministry said on the one hand that the conditions of the bill also apply to terminated loans, on the other hand that the bill does not touch on the suspension aspect, adding that if a mediation process is initiated, the divestiture does not automatically proceed.
The President and Member of Parliament of EDEK Marinos Sizopoulos said in this regard that an amendment to the Transfer Law is needed to include a provision for temporary suspension of sale, while he asked to confirm whether the amount of coverage of €350,000 concerns the original loan or the remaining loan.
Responding to the first point, Mr. Pantelis said that the Ministry will come back with a proposal on the issue of amending the Law on Transfers, while regarding the amount of €350,000 he said that it refers to the initial amount of the loan.< /p>
DIPA Member of Parliament Alekos Tryfonidis requested that the responsibilities of the Board of Directors of the Dispute Resolution Body be clarified so that government interventions are not possible, with the Director General of the Ministry noting that this cannot happen as the majority of the board members are not representatives of the government.
For his part, the MP of the Environmentalists-Citizens Cooperation Movement Stavros Papadouris said that there is uncertainty as to the binding nature of the out-of-court settlement, with Mr. Pantelis stating that the Ministry will return after preparing a relevant proposal.
In the second part of the debate, which was held together with the Parliamentary Legal Committee, the question of issuing Supreme Court directives was examined, so that the President of a District Court could appoint, with the approval of the Supreme Court, a number of Judges for the purposes of adjudicating cases concerning financial differences.
In his deposition, a representative of the Chief Recorder of the Supreme Court stated that there are practical difficulties in identifying and distinguishing cases, while a representative of the Pancypriot Bar Association suggested a clear verbal reference that the transitional provision is activated by a decision of the Supreme Court.
For his part, a representative of ETEK addressed the question of the value of the mortgaged properties included in the bill, saying that it should possibly be revised as the type of properties to which this value corresponds varies depending on the location.
In addition, the representative of the Association for the Protection of Bank Borrowers said that provisions should be expanded to include provisions by which eligible borrowers can apply to the Special Court, with the aim of making restructurings as sustainable as possible and fewer foreclosures.
In his statements after the session, AKEL Member of Parliament Christos Christofides said that the essence of today's debate was the fact that the government's basic position in relation to the protection of borrowers has not changed.
He added that some proposals are being made that improve the whole situation to a certain extent, at the same time expressing his satisfaction with the fact that the proposals submitted by the party in this context have been accepted, with the most important being the proposal to stop sales during the two months that will the case is referred to the Financial Commissioner.
He reiterated, however, that there is no substantial protection net for borrowers, noting at the same time the manifestation within the committee itself of strong disagreements and reactions from the co-ruling parties themselves.
“After the fiasco of the summer in relation to the proposal that we had tabled several political forces in relation to the divestitures, many promises had been made. The government had promised the people a lot, but what finally came is little”, underlined Mr. Christofidis, adding that the last-minute withdrawals also have consequences, referring in particular to a proposal of the summer, which guaranteed the right of borrowers to they go to court, which was a safety net.
“What we have in front of us today improves the situation to a certain extent, but we want to be honest, it is not a safety net for borrowers,” he concluded.
For his part, DIPA MP Alekos Tryfonidis said that the government's bills are in the right direction, adding that after today's debate, the Ministry of Finance will return to the recommendations it adopts and will add, along with additional amendments or proposals of the law by the committee, so as to enable borrowers to appeal to the Financial Commissioner, who will be able to spot abusive loan terms and overcharges and additionally be able to go to court when they disagree.
< p>“We are making a titanic fight so that we finish before the Christmas holidays and with the new year the borrower has a reliable and transparent protection net, which he will rely on to find his right,” he emphasized.
< p>He added after a question that the proposal that the Ministry of Finance agrees with is that for the terminated loans the 350,000 will concern the original loan, as well as some other details that will become clear through the process.
He added that after questions from the Committee on terminated loans, where there was also a disagreement with the Central Bank, the Ministry of Finance insists and finds the Committee in agreement that terminated loans will also be included in the bill.
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