13/01/2015 07:16
Foreclosures return to the parliament today. Lawmakers are called to weigh the political cost from the implementation of the law on the one hand and the economic consequences of its suspension from the other.
This is a dilemma for the parties since September, when the foreclosures law should have been implemented. So far they opted to suspend its implementation until the end of January.
But things are getting more difficult as Cyprus must refinance debt of €2.9 billion this year. To do so, the official financing from the troika must be continued and it should raise money from the international markets.
At the current stage, the troika has frozen the financing program of Cyprus while the yields on the Cypriot bonds, which climbed yesterday close to 5.3%, make it increasingly difficult to return to the international markets.
The Finance and Interior Ministers will be present at today's session of the House Finance Committee to explain and argue for the referral of the suspension of the law by the President of the Republic.
The Finance Minister told StockWatch that any extension in the suspension of the implementation of the law would further undermine the credibility of the country, especially, as noted, at a time when Cyprus is planning to return to the markets.
To appease the reactions of the debtors, lawmakers argue that in order to implement the foreclosures law, the insolvency framework - the five laws regulating the way in which individuals and businesses are led to debt restructuring or bankruptcy - must be passed.
The Minister explained that three of the five pieces of legislation governing the insolvency framework are currently before the parliament.
The fourth has been brought to the attention of the party committee and the fifth is in the hands of the international creditors to express comments and opinions.
He stressed that by the end of the month all five draft laws governing the insolvency framework will be in the hands of the MPs.
The issue of foreclosures was raised by President Anastasiades yesterday before the meeting of the political leaders, suggesting that the decision of the legislative body caused reliability problems in the country, particularly in its effort to return to the markets.
He also noted that the foreclosures law cannot be applied as there are no regulations.
The climate is difficult in parliament because the opposition parties already feel the wear caused by various scandals.
AKEL insists on the extension of the suspension of foreclosures until June. Other parties express their intention to extend the suspension until the enactment of the insolvency laws.
However, presidential sources said that during yesterday's meeting at the presidential palace, most opposition leaders left open the possibility of consenting to a commonly accepted formula to avoid further delay in implementing the program.
This is a dilemma for the parties since September, when the foreclosures law should have been implemented. So far they opted to suspend its implementation until the end of January.
But things are getting more difficult as Cyprus must refinance debt of €2.9 billion this year. To do so, the official financing from the troika must be continued and it should raise money from the international markets.
At the current stage, the troika has frozen the financing program of Cyprus while the yields on the Cypriot bonds, which climbed yesterday close to 5.3%, make it increasingly difficult to return to the international markets.
The Finance and Interior Ministers will be present at today's session of the House Finance Committee to explain and argue for the referral of the suspension of the law by the President of the Republic.
The Finance Minister told StockWatch that any extension in the suspension of the implementation of the law would further undermine the credibility of the country, especially, as noted, at a time when Cyprus is planning to return to the markets.
To appease the reactions of the debtors, lawmakers argue that in order to implement the foreclosures law, the insolvency framework - the five laws regulating the way in which individuals and businesses are led to debt restructuring or bankruptcy - must be passed.
The Minister explained that three of the five pieces of legislation governing the insolvency framework are currently before the parliament.
The fourth has been brought to the attention of the party committee and the fifth is in the hands of the international creditors to express comments and opinions.
He stressed that by the end of the month all five draft laws governing the insolvency framework will be in the hands of the MPs.
The issue of foreclosures was raised by President Anastasiades yesterday before the meeting of the political leaders, suggesting that the decision of the legislative body caused reliability problems in the country, particularly in its effort to return to the markets.
He also noted that the foreclosures law cannot be applied as there are no regulations.
The climate is difficult in parliament because the opposition parties already feel the wear caused by various scandals.
AKEL insists on the extension of the suspension of foreclosures until June. Other parties express their intention to extend the suspension until the enactment of the insolvency laws.
However, presidential sources said that during yesterday's meeting at the presidential palace, most opposition leaders left open the possibility of consenting to a commonly accepted formula to avoid further delay in implementing the program.
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