A potential referral to the European Union could be made if Cyprus’ Supreme Constitutional Court rules the controversial law on abusive clauses unconstitutional, according to Eugenia Moiseos, member of the Movement Against Foreclosures.
Speaking to the Cyprus News Agency (CNA), she said the group is prepared to escalate the issue to EU institutions depending on the court’s decision.
Dispute over legal protections for borrowers
The discussion centres on a 2026 amendment to the Transfers and Mortgages Law, which includes provisions on foreclosure law and alleged abusive contractual terms.
The amendment, introduced as a proposal by AKEL and passed by the House Plenum, reportedly provided for an automatic suspension of foreclosure proceedings when a court challenge is filed.
Moiseos argued the law aligns with EU Directive 93/13 on unfair terms in consumer contracts, warning that non-compliance could place Cyprus in breach of EU obligations.
Constitutional challenge expected
The President of the Republic has referred the legislation to the Supreme Constitutional Court for review.
Moiseos said the movement expects the law to be declared unconstitutional, adding that previous borrower protection measures have often been struck down on grounds of financial stability and market considerations.
She also criticised alternative proposals supported by political parties such as ELAM and DIKO, describing them as procedural rather than substantive protections for borrowers.
Concerns over foreclosure process
The activist argued that Cyprus is unique in allowing property foreclosure before court adjudication is completed, questioning the effectiveness of legal remedies once a property has already been sold.
She further claimed that borrowers may still be left with outstanding debt even after foreclosure.
Reference to alternative legal framework
Moiseos also referred to older legislation dating back to 1964, which she described as a more protective model for homeowners, suggesting it has not been properly implemented.
She stressed that housing should not be treated purely as a financial asset, calling shelter a “universal right”.
Planned escalation to EU institutions
If the court rules against the law, the movement said it intends to coordinate with other organisations and submit a formal complaint or referral to EU bodies, arguing that Cyprus risks breaching European legal standards.
Source: CNA
Also read: Treasury steps into new digital era with Power BI
For more videos and updates, check out our YouTube channel
