Minister of Interior Socrates Hasikos said today that the banks are not at risk from the proposed arrangements for the disengagement of property owners who have no title deeds.
Speaking before the joint meeting of the committees of finance and interior, which examine the bill regarding the trapped buyers from insolvent developers, Mr. Hasikos stressed that properties of trapped buyers will not be foreclosed.
He also expressed the view that banks are not at risk, while he attacked the association of Cyprus banks.
Mr. Hasikos invited the media to speak with the presidents of the banks to report whether they are concerned.
"Talk to the president of the Hellenic Bank and the President of the Cooperative" said Mr. Hasikos.
He noted that for about 95% of the trapped owners cases, banks will not be able to submit complaints, as the transaction was made through banks.
The association of Cyprus banks sounded the alarm, warning that the regulations for disengaging developers’ mortgages without new collaterals by themselves or buyers, create a capital gap of an unknown size in banks.
A representative of the CB said that in a discussion with banks, it was reported that in case banks know about the sale of a property and gave a guarantee or loan, they will not be able to submit objections.
As he said, the 90-95% of cases falls in this category where banks will not be able to submit objections.
The representative of the association of Cyprus banks Dimitra Valiandi Plati, noted that 80% to 95% of buyers are protected because when the repay, the title will be transferred. As noted in these cases a guarantee was given or the bank was involved in lending.
"Our objection," she said, "will refer to a small number of cases where the buyer on his own, with his own savings, bought a property without any lending from a bank."
She wondered whether the Government and the Parliament will agree to any tax increase.
The minister said that there is no anarchy and before there is any increase in tax it should be agreed by the government.
Speaking before the joint meeting of the committees of finance and interior, which examine the bill regarding the trapped buyers from insolvent developers, Mr. Hasikos stressed that properties of trapped buyers will not be foreclosed.
He also expressed the view that banks are not at risk, while he attacked the association of Cyprus banks.
Mr. Hasikos invited the media to speak with the presidents of the banks to report whether they are concerned.
"Talk to the president of the Hellenic Bank and the President of the Cooperative" said Mr. Hasikos.
He noted that for about 95% of the trapped owners cases, banks will not be able to submit complaints, as the transaction was made through banks.
The association of Cyprus banks sounded the alarm, warning that the regulations for disengaging developers’ mortgages without new collaterals by themselves or buyers, create a capital gap of an unknown size in banks.
A representative of the CB said that in a discussion with banks, it was reported that in case banks know about the sale of a property and gave a guarantee or loan, they will not be able to submit objections.
As he said, the 90-95% of cases falls in this category where banks will not be able to submit objections.
The representative of the association of Cyprus banks Dimitra Valiandi Plati, noted that 80% to 95% of buyers are protected because when the repay, the title will be transferred. As noted in these cases a guarantee was given or the bank was involved in lending.
"Our objection," she said, "will refer to a small number of cases where the buyer on his own, with his own savings, bought a property without any lending from a bank."
She wondered whether the Government and the Parliament will agree to any tax increase.
The minister said that there is no anarchy and before there is any increase in tax it should be agreed by the government.
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