NICOSIA: Bailed out Cyprus has pledged to tackle its mountain of bad debt after the cabinet approved proposals to reform legislation on foreclosures as instructed by international lenders.
A troika of lenders has put new pressure on Nicosia to agree delayed controversial legislation on foreclosure procedures for bad loans as part of a multi-billion-euro rescue package.
Opposition MPs argue that changing the law will lead to Cypriot families being made homeless in a country already battered by austerity, unemployment and liquidity-dry banks.
In a television address late on Wednesday after the cabinet decision, President Nicos Anastasiades said there was no way to avoid painful decisions to reduce bad debt and would have to reform antiquated legislation.
“An additional complicating factor is unfortunately very high levels of non-performing loans due to the legal and institutional framework for recovery of debts which remains obsolete,” he said.
Anastasiades said proposed legislation – which needs to be approved by parliament in September – would ensure that the reasonable interests of both borrowers and lenders are upheld.
Published in Dawn, August 1st , 2014
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