A series of laws enacted in 2015 introduced limitations on creditors’ ability to enforce guarantees in prescribed circumstances, particularly as regards individuals with assets below a specified threshold. The Insolvency of Natural Persons (Personal Repayment Plans and Debt Exemption Decree) Law (No. 65(I)/2015) prohibits credit institutions from instituting proceedings to enforce guarantees against natural persons whose assets, excluding their main residence, do not exceed €750,000 under specified circumstances. Other laws passed at the same time amended the provisions of the Bankruptcy Law and the Companies Law regarding guarantees. The 2015 amendments applied only to guarantees which were in existence at the date they entered into effect, namely 7 May 2015, and were due to expire after three years.
The amendments introduced in 2015 have now been extended for a further three years, by Laws 36(I)/2018, 37(I)/2018 and 38(I)/2018, which respectively amend the relevant articles of the Insolvency of Natural Persons Law (articles 67 and 97), the Companies Law (articles 202ΚΖ and 299) and the Bankruptcy Law (article 37B) to this effect.
For further information on this matter please contact Achilleas Malliotis or your usual contact at Elias Neocleous & Co LLC.