The House of Representatives voted in favour of two bills concerning the cooperative banks and the restructuring of financial organisations, during a plenary session which ended after midnight.

The approval of the bills was a precondition for the second installment of the bailout loan worth €1.5 billion. The Democratic Rally, leftwing AKEL, the Democratic Party and the Movement of Social Democrats EDEK voted in favour of the bills, while three MPs, namely the MPs from the Green Party and the Citizens Alliance, and Famagusta MP Zacharias Koulias, voted against.

President of the European Party Demetris Syllouris was abroad with other MPs, participating in a parliamentary mission. The purpose of the two bills was the implementation of the updated memorandum of understanding between the Republic of Cyprus and the Troika of international lenders, concerning the financial sector.

The first amends existing legislation regarding the cooperative banks, in order to transfer licensing, regulation, supervision and supervisory measure powers to the cooperative banks from the cooperative inspectorate, which is being renamed cooperative company service at the Central Bank of Cyprus. Furthermore, it provides for the introduction of necessary regulations for the recapitalisation of the Central Cooperative Bank and the cooperative banks, as well as all consequent changes.

The second amends the existing legislation on the restructuring of financial organisations in order to, inter alia, regulate the empowerment of the Council of Ministers for the support or management of capital means of financial organisations after a suggestion of the Central Bank.

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