Cabinet adopts fourth bill of insolvency framework

Cabinet adopts fourth bill of insolvency framework

The Council of Ministers adopted today the fourth bill of the insolvency framework.

In statements after today’s Cabinet meeting, Deputy Government Spokesman Victoras Papadopoulos said the bill provides those who are facing bankruptcy to be given a second chance to reactivate their ailing business.

Papadopoulos said that the fifth and last bill of the insolvency framework has been drafted and is being examined by the Troika, Cyprus` international lenders (EC, ECB and IMF).

The House of Representatives suspended in its final plenary session of 2014 the implementation of the foreclosures law until the 30th of January, 2015. It also asked the Government to submit all five bills of the insolvency framework, which was scheduled to be put into force on January 1 to set up a safety net to protect vulnerable groups from foreclosure of mortgaged property.

The Troika has indicated that it will not conduct a full review mission for Cyprus` adjustment programme until the foreclosures controversy is over.

Cyprus agreed on March 2013 with its international lenders collectively known as the Troika (EC, ECB, IMF) a €10 billion bailout.