President refers 2026 mortgage amendment bill to the Supreme Court

The President of the Republic of Cyprus has referred the 'Transfer and Mortgages (Amending No. 2) Law of 2026' to the Supreme Court, citing constitutional concerns. The government argues that the legislation, which concerns unfair contractual terms, interferes with the core executive authority regarding fiscal policy and economic planning. A government source stated that the referral is a standard institutional check rather than a political dispute, aimed at preserving legal order. According to the government, the law weakens the foreclosure framework, risks increasing non-performing loans, and encourages strategic debt defaults. Conversely, Jenny Papacharalampous, Director of the Association for the Protection of Bank Borrowers (SYPRODAT), maintains that the law is constitutional and does not violate legal standards. The dispute highlights a growing friction between the legislative and executive branches regarding the management of financial regulations. The Supreme Court will now be responsible for resolving these conflicting interpretations of the law.