President of the Republic Nikos Christodoulides stressed on Friday that the approval by the plenary of the House of Representatives, of the bills that complete the package of measures to address the Non Performing Loans and protect vulnerable borrowers, marks an important milestone in terms of the fiscal stability and financial perspective of the country. 

In a written statement, the President notes that it is an issue that has been pending for years and posed a risk to the fiscal stability and financial reliability of the country, adding that after persistent efforts for several months this issue is resolved.

He notes that with the overall approach of the package promoted by the government, the legislative framework is concluded, a framework, that will form the safety net of effective protection of vulnerable and consistent borrowers.

The President says that 'the responsible political forces' of the country by voting for the package of measures, but also with their proposals and cooperation with the government have contributed significantly towards this achievement.

The collective interest, he stresses, "requires cooperation and sobriety and today's development demonstrates the potential of our country when prudence and responsibility prevail".

Finally, he expresses optimism "that the implementation of prudent policies will shield our economy and bring about further development and progress".

On Friday, the plenary of the House of Representatives approved the two government bills and the two legislative proposals submitted by the coalition parties, with the aim of protecting borrowers from foreclosures.

In particular, a law was passed with the aim of appointing by the Supreme Court a number of judges for the purpose of adjudicating cases of loans for main residence of up to €350,000. The law was passed with 35 votes in favor, 3 against and 15 abstentions.

MPs also passed a law regarding the powers of the Out-of-Court Resolution of Financial Disputes with the aim to expand the scope of the existing competences of the Financial Ombudsman for the appointment of a mediator for the purposes of credit facility restructuring.

The Ombudsman will mediate for a credit facility secured by the main residence or business premises or a terminated credit facility with a maximum  property value of €350,000 in the case of a main residence and €750,000 in the case of business premises. A total of 38 MPs voted in favor while there were 15 abstentions.

In addition, the Parliament approved two legislative proposals regulating the debtor's right to submit a complaint against licensed institutions with the Financial Ombudsman for the main residence. According to the proposals approved, if the borrower is vindicated by the Financial Ombudsman, the process of selling off the property is suspended until the person is vindicated by the court. The proposals were approved with 38 votes in favor and 16 abstentions.