Amendments to the operation of the Body for the Out-of-Court Resolution of Financial Disputes were approved by the Council of Ministers as part of the Government’s overall package of measures, which aims to address the issue of non-performing loans
As reported by the GTP, in his statements after the end of yesterday’s session of the Council of Ministers, the Government Spokesman Constantinos Letympiotis stated that the Council of Ministers approved a bill entitled “On the Establishment and Operation of the Single Body for the Out-of-Court Resolution of Financial Disputes (Amendment) Law of 2023”, explaining that the bill, as is known, is part of the Government’s overall package of measures aimed at addressing the issue of non-performing loans and foreclosures and protecting vulnerable borrowers.
The purpose of the bill, as indicated, is to amend the basic law in order, among other things, to expand its scope, as well as to achieve the appropriate organizational structure and governance conditions based on good practices.
When will a mediator be appointed?
In particular, he added, the purpose of the bill is, among other things, to expand the scope of the basic law so that, for restructuring purposes, a mediator can be appointed, firstly, in a terminated credit facility on the date of application of the amending law (debtors can be submitted to the Financial Commissioner within six months from the date of application of the amending law), secondly, in a credit facility, which was sold to a credit acquisition company and thirdly, in a credit facility of up to 350 thousand euros that is secured by commercial housing.
The structure of the Board of Directors
The Government Spokesperson stated that it was also decided to reform the existing structure of the Agency’s Board of Directors to consist of a seven-member Board, which will be made up of three representatives of Ministries (two representatives of the Ministry of Finance and one representative from the Ministry of Energy, Trade and Industry ), three representatives of financial sector businesses, following a joint proposal by the liaisons representing them and one consumer representative, following a proposal by the liaisons representing consumers.
Responsibilities are separated
Finally, it was decided, as he said, the clear separation of the responsibilities of the Board of Directors and the Financial Commissioner, as well as the definition of the responsibilities of the Assistant Financial Commissioner.
The Government Spokesperson explained that the proposed bill, after having received due legal and technical processing by the Attorney General of the Republic, will be submitted by the Minister of Finance, who was also the proposer of the proposal to the Council of Ministers, to the House of Representatives for its vote in law.
Approval also for the European Defense Fund
Besides, Mr. Letympiotis stated that the Council of Ministers approved a proposal of the Ministry of Defense, which concerns the support of the participation of Cypriot entities in consortium projects of the European Defense Fund and the financing of some of them. “As is known, on April 29, 2021, the European Parliament and the European Council voted on the European Union Regulation establishing the European Defense Fund,” he said, indicating that “its purpose is to strengthen the competitiveness of the European Union’s defense industry through supporting business cooperation, including small and medium-sized enterprises, research centers and universities, as well as cooperation between Member States for the development of defense products and technologies”.
Explaining that the European Defense Fund lasts for seven years from 2021 to 2027 and operates with annual calls for projects, the Government Representative pointed out that the Government supports Cypriot entities that participate in project proposals and request the support of the Ministry of Defense with the aim of not only cooperation achieved at the European level, but also the gradual strengthening of the national defense research and development ecosystem.
“In this way, the domestic supply chain is strengthened, so that it can offer technologically upgraded solutions to the National Guard and more broadly to the competent security agencies of the state”, he indicated.
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