Michalis Hatzipantela calls for stronger protection of primary residences for vulnerable borrowers

On September 14, 2026, European Parliament member Michalis Hatzipantela formally requested stronger protection for the primary residences of vulnerable households in Cyprus. He addressed a letter to the Association of Cyprus Banks, with copies sent to both the Central Bank of Cyprus and the European Central Bank, urging institutional action to safeguard consistent but vulnerable borrowers from foreclosure.

The intervention is rooted in the European Parliament’s "Banking Union - Annual Report 2025," which was officially adopted on March 30, 2026. This report evaluates the current functioning of the European Banking Union and provides the framework upon which Hatzipantela bases his appeal. By citing this report, the MEP seeks to align national banking practices with European standards that emphasize the social importance of maintaining housing stability for vulnerable populations.

The initiative aims to establish a more robust regulatory safety net for those experiencing financial hardship, ensuring they remain protected despite market fluctuations. As the situation develops, it is expected that the banking authorities will evaluate these recommendations against existing national protocols to determine if amendments to local foreclosure policies are necessary.