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New foreclosures bill before the Legal Service again    

August 6, 2019 at 9:19am
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President Nicos Anastasiades is waiting for the opinion of the Legal Service on the island’s new foreclosures bill which was voted in last Friday before taking his next step.

Informed sources told ‘Phileleftheros’ that the crucial bill is already under review by Attorney General Costas Clerides who will decide whether it violates the Constitution or is in contradiction with European law.

One source also said that if the legislation is unconstitutional then the President will directly refer it to the Supreme Court. But if the bill is compatible with the Constitution and the European acquis, then the President will sign it and send it for publication in the official gazette of the Republic.

The President did not raise the issue yesterday during the meeting of the National Council. In the meantime, the bill is under the microscope of the legal departments of banks with an insider saying there is strong concern amongst them. Because the new bill slows down the foreclosures process, a year only after it was speeded up.

As for the compromise proposal approved by ruling Disy and opposition Diko MPs last Friday, this may lead to additional delays of the process than the bill which was voted in a few weeks ago and had been referred back to the House by the President.

Bank officers believe that the office of the Financial Commissioner is not sufficiently staffed to handle referred cases, as provided in the bill voted in last Friday. And this means that the foreclosures process will be as slow as can be.

Bank officers are also concerned that the amendments in the legal framework of foreclosures will affect the stress tests to be carried out by the European Central Bank in 2020.

 

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Foreclosures bill saga continues amid protests outside parliament