New committee to tackle loan sharks

THE AUTHORITIES are working on a new bill to combat the problem of usury, said Attorney-general Petros Clerides yesterday.

A special meeting was held at the Legal Service yesterday to discuss the issue, attended by Police Chief Michalis Papageorgiou, Central Bank Governor Athanasios Orphanides and the permanent secretaries of the Justice and Finance Ministries.

Clerides told reporters after the meeting that a special committee will be set up to prepare new legislation to deal with the phenomenon of loan sharks in society. The committee will comprise representatives of the Central Bank, Legal Service and Justice Ministry.

The proposal will be studied by the committee, and then distributed to the relevant departments and services for further consultation before being submitted to Cabinet and Parliament for approval, he said.

During yesterday’s meeting the Central Bank presented a study on the measures that 18 other EU countries take to deal with the problem.

“We have decided to review this document of the Central Bank to see which of the solutions applied in these countries is the best for our country.

“For this purpose, a committee will be set up with representatives of the Central Bank, Legal Service and Justice Ministry to work on the legal bill which will be distributed, studied and given to Cabinet and Parliament,” said Clerides.

The top legal officer said the Central Bank had asked for a two week period to prepare a number of solutions, adding that the whole procedure “won’t take long”.

Asked whether the bill would stamp out usery, he replied: “We believe it will be one measure to stamp out usery.”

The main topic of debate in the media the last few weeks has been the reported cases of people who borrowed from loan sharks at extortionate rates and who were physically threatened when they couldn’t pay up. Many observers blame illegal gambling for the increase in the number of known cases. The police say they have been aware of the phenomenon for some time.

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