Cyprus on Thursday pushed back implementation of a key foreclosures law until April 17, a move that will further delay the island’s access to the ECB’s bond-buying programme.
Delays in adopting a foreclosures framework are holding up reviews of Cyprus’s bailout programme by its international creditors. Those reviews are contingent to Cyprus participating in the European Central Bank’s 1.1 trillion euro quantitative easing programme, launched last month.
In a majority vote, Cyprus’s parliament put the foreclosures legislation on hold, seeking more time to assess a separate insolvency framework which lawmakers say must come into effect simultaneously to adequately protect homeowners from mass property seizures by banks.
Cyprus is following a three-year reform programme as part of its 10 billion euro EU/IMF bailout. Creditors say the island needs an adequate foreclosures framework to help banks curb high levels of non-performing loans and allow them to lend more and help spur economic growth.
The foreclosures framework was approved late last year by parliament, but was conditional on authorities preparing insolvency regulations and for both to come into effect simultaneously.
Reuters