House extends ban on loan sales to third parties

Parliament on Thursday further extended, to July 10, a ban on the sale or transfer of bank loans to third parties, such as hedge funds.

The current ban was set to expire on Friday, June 26.

The specific extension was deemed necessary to allow a government bill – drafted by the Central Bank – and regulating the same matter to be tabled to parliament.

Back in January, MPs passed an amendment to the Banking Law (1997 to 2013), inserting a clause by which banks licensed in Cyprus may not sell a loan portfolio to credit institutions – such as hedge funds – operating here but licensed elsewhere.

This was in fear that defaulting mortgages, and in effect large swathes of property, could fall into foreign hands, with political implications.

It’s understood the Central Bank bill attempts to address these concerns.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.