Cyprus supreme constitutional court reviews foreclosure law amendment

The Supreme Constitutional Court of Cyprus is currently reviewing an amendment to the Transfers and Mortgages Law, which was proposed by the AKEL party and passed by the House Plenum. The amendment aims to provide for the automatic suspension of foreclosure proceedings once a borrower files a court challenge. President Nikos Christodoulides has referred the legislation to the court to determine its constitutionality. Eugenia Moiseos, representing the Movement Against Foreclosures, stated that the group is prepared to escalate the matter to European Union institutions if the court rules the amendment unconstitutional. Moiseos argues that the current legislation is in line with EU Directive 93/13 regarding unfair terms in consumer contracts. Conversely, some political parties, including ELAM and DIKO, have proposed alternative measures that focus on procedural rather than substantive borrower protection. Activists express concern that current Cypriot practices allow property foreclosure before legal adjudication is finalized. The movement anticipates a potential ruling against the law, noting past instances where borrower protections were overturned in favor of financial stability.