Income Statement and Eurosystem Funding Review
Adoption of Foreclosure Law and Insolvency framework
Adoption removes the uncertainty of previous months, but implementation risks remains
Foreclosure Law
Key challenges & issues
•
New process for private auctions that will be controlled by the Creditor
Provides for the conduction of private auctions and sales of mortgaged
property by Creditors, without the involvement of governmental bodies
New process expected to shorten significantly the time frame for foreclosing
property
The Bank is assessing the various provisions and expect to be using selectively
the new enforcement procedures
Insolvency framework
.
Objective is to introduce a proper insolvency regime for both individuals and legal
entities in Cyprus
The aim of the law is the modernization of the existing bankruptcy
procedures that will enable bankrupt debtors to reactivate their economic
activity after three years following bankruptcy
Appointment of Insolvency Practitioners
•
examine and agree (upon meeting certain criteria) the repayment of
Creditors and maintaining, to the extent possible, the primary residence
Consensual or Non Consensual Personal Repayment Schemes
The Bank is assessing the various provisions of the law, i.e. enforcement rights to
guarantors
Untested process
Courts not adequately
resourced
Lack of experience in court
procedures
Managing reputational
implications
Implementation of the various
provisions of the law
Bank of Cyprus
KOINO
ΚΥΠΡΙ
2235
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