Two bills before Parliament could change how home evictions and bank claims are handled in Cyprus. One proposes an 18-month pause on eviction orders affecting a borrower’s main home. It would also require creditors to arrange suitable alternative accommodation before carrying out an eviction.
The other bill would change when the limitation period begins for claims linked to loan agreements. It would also clarify that negotiations between the parties do not, by themselves, stop the limitation period.
The proposals were submitted by Direct Democracy Cyprus MPs Dimitris Souglis, Diana Constantinide, Yiannis Laouris and Dimitris Baros. They address separate laws but share a focus on borrower protections and credit disputes. Both are proposals; they have not yet changed the law.
Proposed 18-month pause on home evictions
The first bill would amend the Civil Procedure Law. It proposes suspending the enforcement of home evictions or possession orders when the property is the borrower’s main home.
The suspension would last 18 months from the date the order is served on the borrower. According to the bill’s explanatory memorandum, the period would give affected households time to prepare for the possible loss of their home.
The proposal goes further than delaying an eviction. Before enforcing the order, the creditor would have to secure suitable, affordable alternative housing for the borrower and their family. The replacement home would need to be in the same area or nearby, helping residents stay close to work, schools, healthcare and family support.
An alternative home would still be required
The end of the 18-month period would not automatically allow an eviction to go ahead. The proposed alternative accommodation would have to be secured first.
In other words, the time limit and the housing requirement would apply together. The bill would also extend these safeguards to cases where possession is recovered after a main home has been sold under another law.
The MPs say the measures are intended to protect human dignity, private and family life, and help prevent homelessness. They also point to the effects that losing a family home can have on households, particularly those with children or vulnerable members.
Proposed changes to bank claim time limits
The second bill would amend the Limitation of Actions Law. For claims connected to a loan agreement, it proposes using the date the agreement is terminated to determine when the cause of action arises.
It would also remove an existing proviso in the law and add a new article stating that negotiations between the parties do not interrupt the limitation period for a credit dispute.
The explanatory memorandum says the changes are intended to improve legal certainty and protect the right to a fair trial within a reasonable time.
The two bills are separate legislative initiatives. One concerns eviction safeguards and access to alternative housing; the other concerns limitation rules for credit claims. Neither proposal amends the same law as the other.
Translated and adapted from an article published by StockWatch
