Bailed out Cyprus has vowed to tackle its mountain of bad debt after the cabinet approved proposals to reform legislation on foreclosures as instructed by international lenders.
A troika of lenders has put new pressure on Nicosia to agree delayed controversial legislation on foreclosure procedures for bad loans as part of a multi-billion-euro rescue package.
In a television address late on Wednesday after the cabinet decision, President Nicos Anastasiades said there was no way to avoid painful decisions to reduce bad debt and would have to reform antiquated legislation. Opposition MPs argue that changing the law will lead to Cypriot families being made homeless in a country already battered by austerity, unemployment and liquidity-dry banks.
