Friday, 27 May 2016

Cyprus Economy News Article 2

The government is making second thoughts on changing the policy statement on the individual home by revoking the relevant decree of Interior Minister Socrates Hasikos.

At the same time, the Cabinet gave the green light to the competent minister to proceed with a new round of consultations with all those involved, a intention which he had expressed himself in discussing the issue in the House of Commons House.

The Hasikou Decree provides for stricter regulations for the construction of an individual home, which has caused a variety of reactions both on the part of the parties and on the part of organized groups and bodies.

According to a decision taken today by the Cabinet, the notice published in the Official Gazette of the Republic on 4 November 2016 regarding the construction of an individual residence is revoked and Mr. Hasikos enters a new round of consultations with all the involved parties on this issue.

According to the government, the adoption of the above policy emerged after years of consultations with state agencies, non-governmental organizations and other stakeholders.

However, it is noted that there have been reactions from various actors / organized groups / persons, including parties, when discussing the issue in Parliament, with the exception of the Ecologists Movement which agrees with this policy.

It was therefore deemed necessary that the Home Secretary begin a new round of consultations with all the affected institutions for the erection of an individual home, it said.

The policy statement for individual dwellings concerns landowners who apply for individual housing in the countryside except for residential areas.

According to the Ministry of the Interior's last decree, the licensing of such cases will be granted for residences built 500 meters away from the residential area, as specific criteria such as availability of access, infrastructure (electricity, water), etc., are also met. For cases exceeding 500 meters from the residential area, a derogation request will be made available to the Committee of Exemptions.

With the revocation of the decree, the implementation of the individual housing policy will return to the earlier looser data, which the minister, in his presence in the Parliament, had warned that it would have worse results and would not offer the necessary protection for the people he had apply the policy from the beginning.

Both the Minister and other officials pointed out that he was exploited and exploited in a way that favored land entrepreneurs.

The objective, as mentioned, was to apply a more restrictive policy to allow the construction of individual housing on the basis of social and urban criteria.

The decree granted a four-month period in which reasoned objections could be made to enable the policy to be corrected or improved.

Strong reactions

The Interior Ministry's policy statement last November has prompted strong reactions from various affected parties.

Negative were the reactions of citizens with parcels that lose value due to the stricter application of the regulation for the construction of an individual home, as opposed to environmental and professional organizations, which demanded even more stringent regulations for environmental protection and avoidance of cementing in Cyprus.

Within the House there were voices for further relaxation of the policy, while associations, organizations and organized groups called for its definitive abolition.

Environmental associations and organizations have submitted to the Parliament a memorandum recording problems with the implementation of the individual residence policy that came into force in 1991.

The failure of the land consolidation policy in this context was recently acknowledged by Minister of Agriculture Nikos Kougialis, supporting the Ministry of the Interior Decree.

Members of the Home Committee who examined the issue in the presence of Mr Hasikos made strong reactions to the ministerial decree, arguing that with the changes that have been made, homeowners in the countryside, on the basis of what they used to do earlier, see the value of their property be reduced and are exposed to the banks in which they have suffered the property.

Most MPs have called for the order to be annulled and a return to the previous regime, with the Secretary of State declaring the wave of reactions unjustified.

Strong concerns were also expressed by financial institutions that warned that the new policy statement would have serious and significant repercussions on their loan portfolios, forecasts for bad debts and, consequently, their capital adequacy.

In a letter to the minister and the CB, they warned that the arrangements would negatively affect the market value of the land plots outside the development horizon, with consequent significant repercussions on the value of collateral held by credit institutions.

On the contrary, in favor of the stricter policy announced by the government, the ETEK is also in favor, which considers the urban distortion of the implementation of the uncontrolled erection of individual dwellings in rural areas.

By Maria Hambi

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