Cypriot political parties are fast-tracking multiple legislative proposals aimed at reforming the legal framework governing property auctions, a measure positioned as a final step before the upcoming May elections. The proposals are slated for discussion in the Finance Committee on March 9, alongside other pending legislative items.
Accelerated Legislative Efforts
During the latest plenary session, additional proposals were tabled by the Democratic Rally, the Ecologists, and MPs, including Zacharia Koulias and Christos Orphanidis. The proposals address issues affecting lenders, borrowers and guarantors in mortgage-backed property cases. With parliament expected to dissolve before the elections, concerns remain over whether sufficient time will be available for detailed debate and agreement on a unified reform package.
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Key Proposals Under Consideration
Four main proposals are currently under review:
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DRA proposal introduces a temporary freeze on auctions of primary residences valued at up to €350,000 until the end of the year. Supporters argue the pause would give lawmakers time to close legal gaps without encouraging strategic defaults.
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The first Ecologists proposal expands the authority of the Financial Commissioner to review complaints related to debt verification after borrowers receive initial auction notices.
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The second Ecologists proposal sets a minimum sale price at 50% of market value if a property remains unsold six months after the first auction attempt.
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The joint proposal by Koulias and Orphanidis requires lenders to exhaust the liquidation of secured assets before pursuing guarantors. If a mortgaged property is sold, guarantor liability would be limited to the capital amount stated in the guarantee agreement. The same rule would apply when judicial action is initiated against guarantors.
Legislative Calendar And Strategic Implications
The final parliamentary session, initially scheduled for April 2, has been moved to April 23 due to the Easter break. Political parties are pushing to finalize auction-related reforms before parliament dissolves, arguing that delays could leave borrowers without additional protections until the next legislative term begins in the fall.
Separate proposals focused on guarantor protections, submitted by DISY, DIPA, EDEK and independent MPs, form part of the broader legislative effort.
The outcome of the March discussions will determine whether lawmakers can agree on a consolidated reform package before the election period begins.
