The Movement Against Foreclosures intends to file a complaint with the European Union if the Supreme Constitutional Court rules that the law on abusive clauses, which President Nikos Christodoulides has referred to the court, is unconstitutional, group member Evgenia Moiseos told CNA.
Moiseos said the bill submitted by AKEL and ultimately passed by the House plenary into law, the Transfer and Mortgage of Immovable Property Amendment Law No. 2 of 2026 on abusive clauses, was in line with EU Directive 93/13.
She said the law provided for the automatic suspension of foreclosure proceedings until a case is heard, in instances where a borrower applies to court citing abusive clauses.
Cyprus, she added, is already in breach of the directive.
“If the European directive is unconstitutional, then we have a major issue. European directives are not à la carte,” she said.
Borrower protection at the centre of the dispute
Asked to comment on the President’s referral of the foreclosure-related laws passed by Parliament, Moiseos said the group “did not expect anything else”, arguing that every substantial measure of protection for borrowers is deemed unconstitutional on the grounds of market confidence and financial stability.
She said President Nikos Christodoulides signed the proposals tabled by ELAM and DIKO, describing them as “purely procedural” and arguing that they do not protect borrowers in substance.
“They do not protect the borrower. The primary residence is not protected. This is not real borrower protection,” she said.
Moiseos also argued that Cyprus is the only country where a foreclosure can take place before the case is heard in court. She questioned the purpose of a court ruling in favour of a borrower if the property has already been sold.
“The foreclosure takes place and people still owe money. The remaining debt is not written off,” she added.
Reference to 1964 law
Moiseos also referred to a 1964 law, which she described as “the most democratic foreclosure law in Europe”. Under that law, she said, in the case of a home foreclosure, the proceeds are placed under the control of the Director of the Department of Lands and Surveys, who first secures housing for the family. The remainder, whatever the amount, is then used to repay the loan.
“This is the law that exists and is not being used, and now they want to ‘modernise’ it,” she said.
She added that society should not treat housing as a figure on a balance sheet.
“Housing is a universal right,” she said.
Asked what she expects from the Supreme Constitutional Court proceedings, Moiseos said: “Knowing the situation, I know what will happen. As a movement, we will contact other organisations that may wish to participate, and we will proceed with a formal complaint to the EU if the law is ruled unconstitutional.”
Source: CNA
