Parliament on Thursday rejected a presidential referral concerning amendments to legislation governing the Central Agency for the Equitable Distribution of Burdens, in a closely contested vote.
Plenary voted against the referral by 21 votes to 19, with opposition from AKEL, ELAM, the Greens, and three independent MPs.
Concerns over finances
The disputed amendment sought to suspend, from 1 January to 30 June 2027, the deadline for submitting applications for interest rate subsidies on housing loans to the state body. The President of the Republic had referred the law back to Parliament, citing concerns that the measure could increase the organisation’s expenditure in breach of constitutional provisions on public finances.
The president also warned that the suspension risked creating unequal treatment among borrowers, as it would allow individuals who had missed the original deadlines to reapply.
During the debate, AKEL MP and Chair of the Parliamentary Refugees Committee, Nikos Kettiros, sharply criticised the government, accusing it of an “obsession” with rejecting measures that would benefit hundreds of displaced property owners. He said his party had submitted three proposals to support refugees, two of which had been referred back, while a third was passed despite opposition from the Finance Ministry.
Kettirou argued that failure to support refugees would worsen conditions surrounding property issues and fuel social discontent. He added that extensions had been granted in other cases, whereas in this instance missing the deadline resulted in a loss of rights.
Supporting the public is 'not a burden'
Independent socialist MP Costis Efstathiou echoed the criticism, saying the state continued to treat support for citizens as a burden. He maintained that Parliament’s intention was to simplify procedures and relieve citizens from strict deadlines.
Efstathiou also cited a Supreme Court ruling indicating that deadlines imposed without a legislative basis are unlawful, stressing that the principle of equal treatment required support for all displaced property owners in similar circumstances.
By contrast, DIKO MP Christos Senekis defended accepting the presidential referral, arguing that the state had already significantly strengthened the schemes of the Central Equal Distribution of Burdens Body in cooperation with the Refugees Committee. He noted that eligibility had been expanded, including the removal of income criteria and an extension of subsidy durations.
Senekis warned that suspending the application deadline would place a heavy burden on the organisation, pointing out that application review times already stretch to two years.
'Steering away from populist measures'
Similarly, DIKO MP Pavlos Mylonas highlighted previous parliamentary decisions to financially support the body, noting that substantial funds had been approved to prevent its collapse amid a high volume of non-performing loans.
DISY MP Nikos Georgiou described the organisation as a vital institution that should not be subject to “experiments or populism”. He stressed the need for careful management, noting that interest subsidies had already been gradually extended from six to 24 months through parliamentary initiatives.
Georgiou warned that rejecting the referral could lead to paralysis within the organisation and uncertainty for the refugee community.
Despite these concerns, a narrow majority of MPs ultimately voted to reject the President’s referral, allowing the amended law to stand.