Cipro
The House of Representatives is preparing a last-ditch effort to suspend mass property foreclosures before it dissolves in mid-April, as pressure mounts over what MPs describe as serious legislative gaps leaving borrowers exposed.
The issue is scheduled for discussion at the Parliamentary Finance Committee on 9 March, where Finance Minister Makis Keravnos is expected to present the government’s position. The Governor of the Central Bank of Cyprus, Christodoulos Patsalides, has also been invited to attend.
Approximately 30 legislative proposals are currently before the Finance Committee. Central among them is the restoration of borrowers’ right to seek recourse through the courts before their property is repossessed.
Other proposals aim to curb excessive loan inflation by halting the accrual of interest once a loan balance reaches double its original principal.
Further draft bills are expected to be tabled in the coming days before the plenary session.
MPs backing the proposals argue that weaknesses in the existing legal framework have left borrowers without adequate protection, particularly regarding access to judicial review.
Aristos Damianou, MP for AKEL, described the current situation as a “pogrom” of foreclosures, claiming that thousands of people risk losing their homes and small businesses.
“There are no meaningful safeguards on the properties being auctioned,” he said, stressing the urgent need to restore uninterrupted access to justice. “We are tired of watching the rule of law being undermined,” he added, calling for legislative reform to protect future generations.
A joint bill co-signed by AKEL and the Greens seeks to guarantee borrowers the right to apply to court for a suspension of foreclosure proceedings on their primary residence, particularly in cases involving unlawful charges or abusive contractual terms by banks.
Greens MP Stavros Papadouris revealed that vulture funds had initially acquired loans worth €5.7 billion from a total portfolio of €16 billion, noting that “Today, with accumulated interest and charges, their outstanding portfolio stands at €18.5 billion.”
Papadouris also highlighted stark contrasts in judicial timelines. In other jurisdictions, court rulings are typically issued within six months, he said. In Cyprus, however, while auctions proceed within six to nine months, court decisions can take up to nine years.
“In the meantime, properties are repossessed and borrowers remain effectively unprotected,” he warned, adding that even when borrowers win their cases, they are entitled only to compensation; not the return of their homes.
He further criticised delays in the implementation of a special court jurisdiction approved by Parliament in 2023, as well as persistent backlogs in the judicial system.
Citing data from the Financial Ombudsman, Papadouris said that 55% of auctions involving primary residences concerned properties valued below €350,000.
With dissolution looming, the House faces what Papadouris described as a final opportunity to address the foreclosure framework. Lawmakers argue that unless swift action is taken, the existing legislative vacuum will continue to leave thousands of homeowners vulnerable.
As the political clock ticks down, the coming weeks may prove decisive for Cyprus’ property market – and for borrowers fighting to retain their homes.
