The plenary of the House of Representatives, in an extraordinary session on Sunday, approved five bills and draft regulations aimed at enhancing the legal framework to facilitate the reduction of non – performing loans (NPLs), one of the major burdens of Cyprus’ banking sector.
The bills were approved by a majority vote. The ruling Democratic Rally party (DISY) and the opposition Democratic Party (DIKO) gave their seal of approval to the bills.
Some of them were also voted in by other smaller parties after a number of amendments had been introduced. Left wing opposition AKEL party voted against all the bills.
The extraordinary plenary session started at 17.00 and ended around 22.00.
According to the Government, the bills provide for faster procedures for the reduction of NPLs, while at the same time they expand the insolvency framework to protect and facilitate those borrowers who need protection.
As Finance Minister has stressed after the approval of the bills by the Cabinet last month, 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./IBNA