THE troika of Cyprus’ international lenders have yet to decide if recent changes to the island’s insolvency law are enough to allow an outstanding review of its aid programme to be concluded, the European Central Bank said on Monday.
Earlier this month, lawmakers in Cyprus approved legislation governing foreclosures, paving the way for the island to join the ECB’s sovereign bond-buying programme. But the ECB said no final decision had been taken as to whether the Cypriot action was enough to meet the terms of its aid-for-reform programme.
“The three institutions (International Monetary Fund, European Central Bank, European Commission) are currently in Nicosia and reviewing the detailed information on the insolvency frameworks and other laws that the Cypriot parliament passed,” said a spokesman. “A final assessment on whether recent actions suffice to close the current review has therefore not been taken yet.”
Foreclosure warning letters
Meanwhile the commercial banks and the cooperatives have started sending foreclosure warning letters to defaulting borrowers whose loans are secured by mortgaged property.
The letter calls on the debtor to notify the bank if they have problems maintaining their loan repayment and advised them of their right to restructure the debt.
The provisions of the Property Transfer and Mortgaging law require that any letter sent in connection with a default or demand for mortgage repayment must be accompanied by a notice warning customers, that unless a mutually acceptable solution to their debt restructuring is negotiated, procedures to sell the mortgaged property will be instigated.
Author: Nigel Howarth, news.cyprus-property-buyers.com