NEO MP, Christos Clerides, submitted on Monday a new proposal for the amendment of the basic interest rate awarded by the courts, which provides for the “abolition” of the annual interest of 8%, giving the right to the Central Bank to set the interest rate paid by the debtors.

“Given the liberalization and fluctuation of the interest rates, they should not remain stable”, Mr. Clerides said, stressing that debtors are currently urged to pay higher interest rate than that of the market, while creditors receive higher compensation than any other short-term bank deposit.

Speaking at StockWatch, Chairman of the Insurance Companies Association, Philios Zachariades, welcomed Mr. Clerides’ initiative, but stressed that the imposition of an interest rate of 8% on the bill of charges paid by the companies should be amended in a similar way.