Opposition delays NPL & Co-op bills

Nigel Howarth
-
3
Opposition delays NPL & Co-op bills

Cyprus opposition parties delay NPLs & Co-op billsOPPOSITION parties have given notice in the Cyprus parliament that they intend to make life difficult for the government in its efforts to conclude an agreement for the takeover of the Cyprus Cooperative Bank by the Hellenic Bank and pass legislation easing restrictions on the handling of non-performing loans (NPLs).

A plenary session of parliament today decided against declaring the legislation urgent, which means that it will have to go through the normal process resulting in a long delay.

A majority of opposition MPs decided to have the bills discussed by the parliamentary finance committee, which will decide whether to have them debated in a week’s time and to go ahead with a political debate concerning the handling of the Cooperative Bank by the government.

The bills relate to government guarantees, the insolvency framework, the sales of loans, foreclosures and the transfer of properties..

Both the government and the Central Bank have warned that failure to approve the legislation in time may lead to the destabilisation of another bank, which has not been named.

House speaker Demetris Syllouris said that the government will submit a bill on Monday for the protection of primary residence owners and added that they all expressed their will to vote on the bills. “No-one will vote blindly” he said.

Cabinet approves NPL reduction bills

Nigel Howarth
-
0
Cabinet approves NPL reduction bills

Cyprus cabinet approves NPL reduction billsON THURSDAY the Cabinet approved four bills and draft regulations aimed at improving the legal framework to accelerate the reduction of non-performing loans (NPLs).

The parliamentary finance committee is scheduled to review the bills on Monday.

Finance Minister Harris Georgiades said after the meeting that the bills were drafted along the lines prescribed by the European Commission for giving its permission for the deal between the Hellenic Bank and the Cyprus Cooperative Bank earlier this week to go ahead – and he called on the House of Representatives to approve the bills and regulations before it begins its summer recess in mid-July.

Yiangos Demetriou of the Cyprus Central Bank warned that failure to conclude the agreement for the purchase of the Cyprus Cooperative Bank by the Hellenic Bank will have a catastrophic impact. He said that the alternative could be the resolution of the Cooperative Bank in a way that would put at risk even guaranteed deposits below €100,000.

The Minister referred to “gaps and weaknesses” in the current legal framework “which in turn cause excessive pressure by the European Central Bank on the Cypriot banking sector and eventually on borrowers and therefore we believe that there is an urgent need to improve this legal framework”.

Speaking to the press after the Cabinet, he noted that the suggested amendments will render the current legal framework “more effective, more functional and fairer”.

According to Georgiades, the amendments provide for faster procedures, while at the same time they expand the insolvency framework “to protect and facilitate those borrowers that need protection”.

“In the framework of the European Banking Union, in which the Cypriot banking system is now operating, promoting such amendments without delay is absolutely necessary to avoid risks that may arise should these gaps in the legislative framework remain” stressed the Minister.

Georgiades said that the European Central Bank warned that if measures were not taken another bank (which he did not name) may be in trouble.

Cyprus property value change notification

Elias Hazou
-
0
Cyprus property value change notification

Cyprus property valuationTHE SUPREME Court on Thursday ruled that a law passed last November, obliging the Land Registry to personally inform owners of property in Cyprus of any significant change in the value of their property, was constitutional.

The legislative proposal, an amendment to the retention, registration and valuation law, had been passed by parliament by unanimous vote.

It requires the Land Registry to inform by letter anyone whose Cyprus property value is, or may be, significantly affected by any decree or court decision.

This includes zoning arrangements that may affect the value of a property.

The president had refused to sign the bill into law on the grounds that it was unconstitutional – he argued that it violated the separation of powers and that it would incur additional administrative costs, which parliament had no authority to effect.

The matter ended up being referred to the Supreme Court, which has decided the law does not breach the constitution and thus stands.

Previously, the Department of Lands and Surveys did not notify property owners on an individual basis of any changes that might affect the value of properties.

Notifications of such changes had been published in the government gazette, on the land registry website, or via bulletins posted in communal spaces like coffeeshops.

The reasoning behind the amendment, introduced by Edek MP Costis Efstathiou, was that the state should inform all property owners – including those who are not internet savvy – in a timely manner of any decisions impacting the value of their property.

By law, property owners have 40 days in which to appeal any such decisions.

Cyprus property rent reforms

Nigel Howarth
-
2
Cyprus property rent reforms

AS MANY landlords will confirm, evicting tenants from properties in Cyprus that are regulated by the Rent Control Law who fail to meet their contractual obligations and fail to pay the rent is extremely difficult as the rent laws are pro-tenant.

A few years ago it took an acquaintance of mine nearly four years to evict tenants who refused to pay the rent. It cost him €25,000 in legal fees before an eviction order was served on them by bailiffs from the court. The tenants then proceeded to trash the property before slipping out of the country without paying many thousands of Euros in unpaid rent.

Those who know how the ‘system’ works in Cyprus exploit the slow justice system and refuse to pay their rent knowing that it may take several years before they’re evicted.

At the time the rent law was introduced in 1975, it was fully justified. Its purpose was to help refugees from the Turkish invasion who had fled south and assist them to settle in the Republic. These days the law only serves those wishing to avoid paying rent.

Help for landlords

Members of the DISY parliamentary group have proposed amendments to the rent laws and submitted them to parliament for approval. These proposals are designed to make the recovery of Cyprus property from defaulting tenants more effective.

They introduce a new out-of-court settlement for disputes between landlords and tenants that will also reduce the workload of the Rent Control Court, which has jurisdiction over the recovery of controlled rented property.

It is assumed that the Rent Control Court will issue possession orders within six months from the date the landlord files an application. In the case of retail and business premises, these could be issued within three months if the landlord waives his claim to any unpaid rent.

Limassol high rents protest

Nigel Howarth
-
2
Limassol high rents protest

ON SATURDAY an unofficial group ‘Limassol for All’ staged a protest outside the Limassol District Administration office on Anexartisias Street against the high rents in the city.

The protest, which was formed by a call to action on Facebook, was attended by hundreds of mainly young people carrying banners and slogans against rents for homes and apartments, which have increased in the region of 25 percent in less than two years.

The main culprit, they claim, is attempts to attract foreign capital to the city though residential developments targeted at high net worth investors, which has resulted in a more expensive housing market. Plans for the city have not been discussed with local residents.

Addressing the protestors one of the organisers said “The high rents aren’t because landlords woke up one day and decided to bleed the people dry. They are the result of a short-sighted and extremely aggressive policy to attract foreign money to solve the problems of the big local players.”

One of the protestors said that “Many residents are worried about the imminent changes to the city but feel helpless to do anything about them. Our purpose is to break the wall of silence.”

Members of the group made it clear that their purpose was not to force landlords to lower their rents “they have their right to a free market”, but what needs to change is the attitude of estate agents so they do not over-value properties by calling it “growth”.

The organisers said that what is happening today is forcing young people to leave the city as they cannot afford the high rents and property prices.

The ‘Limassol for All’ team plans to organise discussions and workshops and cultural events to attract more people to the cause.

[youtube=https://www.youtube.com/watch?v=tb2o9Rp-zB8&w=470&rel=0]

Glimmer of hope for Pissouri homeowners

Andria Kades
-
3
Glimmer of hope for Pissouri homeowners

devasted house at Limnes in PissouriAFTER years of worry, residents in Limnes village Pissouri are hopeful a solution will now be found for their rapidly disintegrating homes following a recent meeting with the interior minister.

Member of the Pissouri community council, Markos Foutas, told the Sunday Mail this week that a course of action had been decided during the meeting with Interior Minister Constantinos Petrides which took place on Friday. The most important is that a comprehensive study will be carried out to outline the various options and the costs associated with each, that could help the government decide the best way forward.

In total, 60 properties are affected by serious land slippage which has caused some homes to rip apart, roads to buckle and electricity cables to move. Four families have had to move out completely. The damage affects the whole area and not just properties built by individual developers.

During the meeting, it was decided to establish a committee comprised of the Limassol district officer, experts from the department of geological survey, public works, water board and a member of the Pissouri community council.

Their first task, according to Foutas is to call for tenders in the next few weeks for the study which is set to be carried out.

Detailing its purpose, he said the study would offer a breakdown of possible solutions which could be undertaken to solve the problems and the respective costs.

For example, “would they approach it geologically, using piling to fix the roads for example? Or would they evacuate the area? How much would each option cost?”

This, according to Foutas will serve as a guide for the government.

The study is expected to be completed by the end of the year.

Petrides also said there was a “big possibility” that he would table a proposal to cabinet aimed to help the families who have had to be evicted.

According to Foutas this would be in the form of financial assistance. However, the minister said it was a matter of studying all options – for instance the legal aspect as private developers also have responsibility.

Even though this is certainly not the first time residents got their hopes up, Foutas said “we are very positive. The meeting lasted over two hours and the minister gave us a lot of attention.”

In 2015, the former interior minister, Socratis Hasikos, had announced plans to put measures in place. These included expanding projects designed to channel rainwater away from the area. New wells were also set to be drilled to monitor the underground water.

The cost, quoted at €20m, was going to be paid for by the government.

Nothing materialised and then the government changed its mind, saying the fault lay with the contractors who had, for instance, used inadequate filling-in works.

According to Georgia Elina Zoi, a lawyer who has taken up the case on behalf of the residents, this was nothing but a ploy as the engineers who designed the homes over 20 years ago are either retired or dead.

1...270271272...696Page 271 of 696