Government ready for talks on foreclosure debacle
Finance Minister Makis Keravnos said the government is ready to discuss with the other ruling parties the strengthening of support for vulnerable groups facing foreclosures.
“Within the context of the ongoing dialogue and with the responsibility of having to find a definitive solution, the government is ready to discuss and reach a conclusion on the basis of what is mentioned in the statement of the three parties – Diko, Edek and Dipa – and their specific positive and constructive proposals,” the finance minister said.
Keravnos warned, however, that the final deal must reach a balance between protecting borrowers and ensuring the country’s creditworthiness, meaning financial stability.
His comments on Wednesday came just after a joint statement from Diko, Edek, and Dipa on their co-sponsored bill – setting the stage for a high-stakes vote on Thursday.
In a bid to head off a bill proposed by Akel, the pro-government parties – Diko, Edek and Dipa – have tabled a similar bill, but one far more limited in scope in terms of how many delinquent loans it would affect.
The Diko, Edek and Dipa bill has been estimated to impact just €527 million in non-performing loans (NPLs) – compared to the notional €2.2 billion affected by the Akel bill.
For their part, the joint statement by the three parties explained that the government’s proposal can be the framework for NPLs but that more measures are needed.
They called on the government to consider other measures, too, such as expanding the responsibilities of the financial commissioner and bolstering the post by adding manpower, upgrading staff and digitialising procedures.
The three parties also agreed to consider broadening the requirements for filing complaints with the financial commissioner “to allow the review of complaints about illegal charges and/or excessive clauses”.
A marathon session in parliament on Monday failed to avoid a showdown at the House plenum for later this week, where MPs will be voting on a contentious bill tabled by Akel allowing debtors to obtain a court injunction setting aside foreclosure proceedings.
The House finance committee convened earlier in the week to discuss the government’s package of proposals addressing the issue of non-performing loans (NPLs) in the banking system as well as the slew of bills tabled by the parties amending the legislative framework governing repossessions.
As it turned out, the Akel bill – co-sponsored by Edek, Dipa and some Diko MPs – was not withdrawn. The legislative proposal – which the government and banking authorities have dismissed out of hand – will be going to the plenum for a vote.
As it stands, the bill garners 33 votes – enough to pass.
But in a bid to head it off, the pro-government parties – Diko, Edek and Dipa – have tabled a similar bill, but one far more limited in scope in terms of how many delinquent loans it would affect.