The Democratic Party (DIKO) has submitted a new bill to Parliament aimed at resolving the long-running issue of property foreclosures in Cyprus.
Speaking at a press conference on Friday at the party’s headquarters in Nicosia, party leader Nikolas Papadopoulos said the proposal would allow the Supreme Court of Cyprus to appoint specialist judges to handle financial and mortgage-related disputes more quickly.
Specialist judges for financial disputes
According to DIKO, the proposed law would enable the Supreme Court to appoint judges with expertise in financial matters. These judges would deal with cases involving disputes between borrowers, guarantors and lenders.
The cases could include disagreements over:
- The total size of the loan
- The outstanding balance
- Allegedly unfair contract terms
- Any other issue arising from the loan agreement
Mr Papadopoulos said Cyprus is currently experiencing some of the strongest economic conditions in its history, making it possible to fully address the foreclosures problem.
Nine-month suspension of foreclosures notice
Under the proposal, a mortgage debtor would have the right to apply to the court to set aside a foreclosures notice. The court could then issue an order suspending the notice for up to nine months.
After this period, the mortgage lender would be allowed to issue a new foreclosure notice, unless the court decides otherwise.
DIKO argues that this nine-month window would give borrowers time to negotiate and seek a settlement, while ensuring that cases are handled swiftly by specialist judges.
Faster decisions and fairer outcomes
The party says the reform would encourage quicker court decisions and out-of-court settlements. With a clear nine-month timeframe, both sides would have an incentive either to resolve the dispute or proceed promptly to judgment.
Mr Papadopoulos stated that the proposed amendment, together with cooperation between the executive and judicial branches, would provide a comprehensive solution to the foreclosures issue.
He added that the framework would reward responsible borrowers while preventing abuse of the system by strategic defaulters.
The bill is expected to spark further debate within Parliament as Cyprus continues efforts to stabilise its property and lending sectors.
