05.01.2023
The Borrower Protection Association on Wednesday released a statement calling on the government to develop and take immediate action to help consumers, households, businesses and borrowers as the foreclosure moratorium ends at the end of January.
“The matter is urgent because on January 31, 2023, the suspension of enforcement ends, so all those responsible should think about what will happen and should try to prevent it,” the association said in a statement. In addition, the association noted that borrowers are ready to cooperate with banks on the basis of the relevant directive and code of conduct of the Central Bank of Cyprus (CBC).
Further, the association notes that many borrowers are constantly urging ” Siprodat ” to call on all borrowers to stop making payments on loans, leaving their property at the disposal of banks. The association said that most of the borrowers asked the association to call on its members to take to the streets in full force, as was recently done in Athens, Greece.
“The defiant government inaction is hurting borrowers, households and small and medium-sized businesses (SMEs), leaving the local economy now in real danger,” the association said, noting that the mortgage scheme’s rent announcement was shrouded in uncertainty, and no one fully knew when this scheme would come to fruition, if it ever actually came to fruition.
“While unprecedented spending increases, primarily due to inflation and the war in Ukraine, are haunting the citizens of all European countries, and their governments are taking various measures to help their people, there has been no planning in Cyprus and no measures to address yet not accepted,” the association added. In addition, the association stated that “the government sleeps, but the righteous do not sleep, but, unfortunately, the unrighteous sleep.”
SIPRODAT also used its statement to remind that the Greek government has already developed and implemented various relief measures to address rising costs and how they affect people’s ability to repay their loans. These include the government covering a 50 percent premium increase over 12 months for about 30,000 borrowers and cutting some bank fees.
In addition, Greek Finance Minister Christos Staikouras asked banks and credit management companies to increase the number of debt settlement permits through an out-of-court settlement mechanism.
“We call on the government to immediately develop and implement relief measures for consumers, households and businesses,” the association concluded in a statement, demanding borrower relief measures similar to those adopted by the Greek government.
