NICOSIA – Cypriot bankers, who were bailed out by the government and their own depositors, said they don’t plan massive foreclosures despite being given that authority to mollify international lenders.
Cypriot President Nicos Anastasiades, reversing his campaign pledges of two years ago, rammed through the Parliament a bill to let bankers take people’s homes, after he had agreed in 2013 to let them confiscate 47.5 percent of bank accounts over 100,000 euros.
That forced depositors to pay for the losses the banks incurred with huge holdings in devalued Greek bonds and bad loans to Greek businesses. No banker has been held accountable and the moves wiped out much of the life savings of many Cypriots.
The troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB), which put up 10 billion euros in loans, was withholding further assistance until Cyprus passed the bill to let banks go after people who can’t pay because of losses and austerity measures.
The law on foreclosures of mortgaged immovable properties, passed recently by the House of Representatives, will force some customers to negotiate, high ranking bank officials in Cyprus said, according to the Cyprus News Agenc.
Hellenic Bank Chief Executive Officer, Bert Pijls, the Director of Restructuring and Recoveries at the Bank of Cyprus, Evan Hamilton, and General Manager of the Cooperative Central Bank, Marios Clerides, were the main speakers at a round table discussion May 19.
That was organized by the Institute of Young Scientists on the business plans of Cypriot banks after the implementation of the foreclosure law.
The event was also addressed by Chairman of the House Committee on Finances and President of the opposition Democratic Party, Nicolas Papadopoulos.