NICOSIA, Cyprus (AP) — The European Union warned Cyprus Wednesday that it may be flouting the terms of its multibillion-euro rescue package after the country’s parliament approved legislation softening a crucial foreclosures law.

Though legislators have approved a law that significantly cuts the time banks need to seize and sell off property in order to tackle a huge number of bad loans, they also backed several other measures that give additional cover to borrowers. Those measures include writing off the outstanding amount of a loan once property is foreclosed on and allows borrowers with loans of up to 350,000 euros ($450,000) to seek court protection for their homes and businesses.