Cyprus’ lenders have set the entry into force of a new bill for foreclosures as a precondition for the next disbursement.

However the Cypriot parliament approved a basic bill on foreclosures along with a series of additional bills which have been deemed by the Troika as non-compliant with the programme’s requirements.

As a result the approval of the Cypriot programme’s next disbursement was removed from the agenda of the Eurogroup meeting in Milan last Friday.

Sources told CNA that the Eurogroup after being briefed on the state of play authorised the Eurogroup working group to deal with the issue and should it ascertain compliance with the pending precondition submit its recommendation both to the Eurogroup and the European Stability Mechanism.

Under the normal procedure the Eurogroup would have to convene and authorise the ESM to approve the disbursement of the next tranche, whereas in this case a Eurogroup meeting will not be necessary.

The compliance with the programme requirements hinges upon the result of the Supreme Court, which will convene to assess whether four bills approved by the parliament and referred by the President of the Republic comply with the constitution.

The Supreme Court will convene on October 20.

Meanwhile the parliament is expected to convene to debate two bills referred by the President.

In case the parliament approves the bills once more, the President will have to sign the bills or refer them to the Supreme Court to decide on the dispute.

So far Cyprus has received five tranches amounting to €5,77 billion from the EU and the IMF. The sixth tranche amounts to €436 million (€350 million from the ESM and €86 million from the IMF).

Source: Famagusta Gazette