Eleftheria Paizanou
The golden section was found for the bills that strengthen the legal framework for the management of red loans and which are included in the 14 prerequisites that Cyprus must meet to receive the second installment, amounting to € 85 million, from the Recovery Fund.
After intensive consultations between the Ministry of Finance and the Financial Commissioner Pavlos Ioannou, new texts of the disputed bills were drafted, which will be discussed next Monday in the Parliamentary Committee on Finance, in order to prevent the approval of the amendment of ELAM and ELAM.
Specifically, the amendment restricts the access of credit facility management companies to the Artemis database and the Land Registry database, in order to obtain information on guarantors, collateral providers and related parties. According to information from “F”, from the revised texts that will be sent to the deputies in the coming days, the security providers and the related persons will be removed from the control of their data by the loan managers.
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Also, the two parties have agreed on how the guarantors will be protected, however, the wording of the restrictions in relation to the control that will take place remains. That is, they try to figure out how to control the assets and data of the guarantors. The ultimate goal of the ministry and the Commissioner is to reach a consensus with the revised texts and for the bills to be approved by the Parliament.
It is worth noting that in the European Directive concerning loan managers there is no mention of collateral providers, related parties and guarantors and for this reason the Ministry of Finance has consented to the removal of the first two groups. In addition, the two sides have agreed that the revised texts should include the definition of “loan manager” and the way in which it will operate, as set out in the relevant European directive.
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