DISY MP and Chairman of House Legal Committee, Ionas Nicolaou expressed his decisiveness to urge the political parties to approve the bill on the judicial interest, which is under review in the past six years. After the unsuccessful effort to approve the law in July, Mr. Nicolaou warned that he will not allow further delays in the amendment of the law, which burdens the compensations on cases judged from the Cypriot courts with an interest of 8% instead of 4.25% of the base rate.
“We are in front of a one-way street. The decision must be taken by October 2. It will be either approved or suspended. The Committee will not continue dealing with a proposal that is being discussed 6 years now and hits the consumers”, Mr. Nicolaou told StockWatch.
Mr. Nicolaou reminded that at its last session on July 10 he had committed before the Parliament that he would bring the issue back for discussion on the first session after the summer holidays.
DISY MP said that AKEL’s decision to request the postponement of its approval was unacceptable.
“All the time AKEL managed to achieve its target and we didn’t go on with the approval of the bill. Unfortunately, during the last session DIKO changed its stance. It is noted that the proposal for a floating rate was submitted by DIKO. I had adopted this proposal to end up with the issue”, he stressed.
Mr. Nicolaou urged AKEL to submit its amendments on October 2, when the issue will be discussed by the Parliament again.
“I don’t see any other proposal or amendment except for what we have been discussing in the past six years”, he said, stressing that all parties have agreed with the floating rate: the Attorney General, the representatives of the Justice Ministry, the Chairman of Bar Association, the representatives of the Insurers’ Association, the Association of Commercial Banks of Cyprus, CCCI and OEB.
The Insurer’s Association is exceptionally concerned about the issue, since the extra sums for compensations that the companies are burdened reach thousands of pounds each year. According to Chairwoman of the Association, Stefi Drakou, the pending cases for the vehicles sector and the employers’ insurance in 2007 only reached £79 million or €134 million.
The bill provides for the amendment of the Court Law 2008 so that the judicial interest, which is currently stable at 8%, becomes floating on the basis of the base rate determined by the Central Bank of Cyprus. The interest is payable on the judged sum of compensation.
According to Mr. Nicolaou, the lower judicial rate will force the insurance companies to restrain or even reduce their premiums.
“We are in front of a one-way street. The decision must be taken by October 2. It will be either approved or suspended. The Committee will not continue dealing with a proposal that is being discussed 6 years now and hits the consumers”, Mr. Nicolaou told StockWatch.
Mr. Nicolaou reminded that at its last session on July 10 he had committed before the Parliament that he would bring the issue back for discussion on the first session after the summer holidays.
DISY MP said that AKEL’s decision to request the postponement of its approval was unacceptable.
“All the time AKEL managed to achieve its target and we didn’t go on with the approval of the bill. Unfortunately, during the last session DIKO changed its stance. It is noted that the proposal for a floating rate was submitted by DIKO. I had adopted this proposal to end up with the issue”, he stressed.
Mr. Nicolaou urged AKEL to submit its amendments on October 2, when the issue will be discussed by the Parliament again.
“I don’t see any other proposal or amendment except for what we have been discussing in the past six years”, he said, stressing that all parties have agreed with the floating rate: the Attorney General, the representatives of the Justice Ministry, the Chairman of Bar Association, the representatives of the Insurers’ Association, the Association of Commercial Banks of Cyprus, CCCI and OEB.
The Insurer’s Association is exceptionally concerned about the issue, since the extra sums for compensations that the companies are burdened reach thousands of pounds each year. According to Chairwoman of the Association, Stefi Drakou, the pending cases for the vehicles sector and the employers’ insurance in 2007 only reached £79 million or €134 million.
The bill provides for the amendment of the Court Law 2008 so that the judicial interest, which is currently stable at 8%, becomes floating on the basis of the base rate determined by the Central Bank of Cyprus. The interest is payable on the judged sum of compensation.
According to Mr. Nicolaou, the lower judicial rate will force the insurance companies to restrain or even reduce their premiums.
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