19.10.2022
On Wednesday, the House Legal Affairs Committee began debating a bill that would create special jurisdiction in district courts to quickly resolve financial disputes.
Edek leader Marinos Sizopoulos said the proposal, signed by Edek and Dicko, would create a special division in district courts to directly appeal borrowers who disagree with bank overdrafts or the procedure that lending institutions follow when selling loans.
According to representatives of the ministry after the meeting, the proposal is almost identical to the one that was submitted by the government in 2021 and subsequently withdrawn due to amendments made by the parties.
Asked whether the bill is unconstitutional, Sizopoulos explained that the only change in the specific bill is the removal of a provision giving only members of vulnerable groups, as defined by ministerial decree, the right to appeal.
The ministerial decree will be subjective, he said, emphasizing that everyone should have free access to justice and adding that since the Legal Service signed the bill, “unconstitutionality is out of the question for us.
“We hope that this time we will move away from the delays and expediency that have defined discussions in the past, so that we can also offer the necessary protection to the public from the abuses that financial institutions have shown towards them,” Sizopoulos said.
He added that it is believed that this will greatly protect borrowers by helping to restructure loans in a timely and correct manner to reduce their number. “It will also be for the good of the economy and the financial institution and, above all, for the good of society.”
Cristiana Erotokritou expressed her hope that the bill would soon be presented to the plenum of the House of Representatives, saying her party would do its best to get it in before it was finalized in December.
In statements, Akel’s Aristos Damianou said the latest discussion was not new, recalling the government’s initial proposal, which was “authoritatively” rejected in 2021 following “significant amendments” by opposition parties that “would ensure the rights of borrowers and guarantors to unhindered access to to justice, create conditions for a fair trial, and rebalance the rights of borrowers and banks.”
Damianu said reviving the bill was a step in the right direction, but not enough, so “we will bring back a comprehensive amendment that is agreed upon by all parties, which we believe provides both rights and opportunities for the benefit of borrowers and guarantors.”
