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Creditors focus on plenary

14/05/2015 07:12
The international creditors of Cyprus will focus on today’s plenary session ahead of the approval of the regulations on foreclosures and the draft law tabled by AKEL MP, Nicos Katsourides in relation to the real estate auction process.

A source of the international lenders involved in consultations with the Cypriot authorities, within the framework of the sixth assessment of the adjustment program, told StockWatch that the result of the decisions on the two issues taken by the parliament today will be a major element in the final assessment.

He noted that the remote consultations made on a technocratic level between the troika and the Cypriot authorities (Ministry of Finance, Central Bank and Ministry of Interior), are proceeding very well.

He did not hide, however, the reservations of the international lenders in relation to what the House plenary will vote during the afternoon session, both in relation to the regulations on foreclosures as well as the proposal by Katsourides.

The proposal of AKEL MP Nicos Katsourides provides, among others, the right to the mortgage debtor to participate in the real estate auction process.

The legal service, when discussing the issue in the House Committee, pointed out that the proposed arrangements arising from the bill of AKEL MP conflict with relevant provisions of the Constitution and in particular with Article 28.

Any involvement of the affected debtor in the auction process violates the principle of equal treatment, a representative of the Legal Service had noted.

The team of lawyers of the international creditors seems to agree with this legal approach.

The regulations on foreclosures and Katsourides’ proposal will be raised at this morning's meeting of the heads or representatives of the parties under House President Yiannakis Omirou.

Information from the parliament said that Mr. Omirou will raise the concerns expressed on the issue by the troika.

Today's decisions by the House plenary and the so far results of the remote consultations between the creditors and the Cypriot authorities will be assessed tomorrow within the framework of a teleconference in the presence of Finance Minister Harris Georgiades and maybe the Central Bank Governor Chrystalla Georghadji.