DIKO: Proposal to Suspend First Home Foreclosures Until 2026

The Democratic Alignment (DIKO) proposes a suspension of first home foreclosures until the end of 2026, aiming to prevent the foreclosure of any primary residence valued up to €350,000. DIKO's president, Marios Karoyian, announced the submission of a relevant bill to Parliament.

Mr. Karoyian described foreclosures as one of the most serious social and economic issues, emphasizing that loopholes remain that allow the loss of primary residences despite legislative interventions. DIKO proposes strengthening the institution of the Financial Ombudsman, so that its decisions are binding for disputes up to €50,000.

Furthermore, it is proposed to mandatorily implement the Central Bank's Code of Conduct for loans in which at least 50% of the original capital has been repaid since January 1, 2010. Also, first home refinancing up to the first degree of kinship is proposed.

DIKO calls on the Government to reinstate the "Rent vs. Installment" scheme and proposes the creation of a Special Solidarity Fund through a special fee on each mortgagee for each property foreclosed or recovered.

Mr. Karoyian rejected proposals to tax banks or deposits, emphasizing the importance of banks' corporate social responsibility.