The Cabinet has approved the Treasury's proposal to establish a "rent versus installment" scheme known as mortgage to rent.
The proposal is the result of consultations with relevant European authorities, according to a written statement issued by the Council of Ministers.
As stated in the written communication, the proposal has now been referred to the competent authority, which is the state aid watchdog, in accordance with the relevant procedures for obtaining final ratification by the competent EU authorities.
It should be noted that in order to participate in the rent vs installment scheme, a borrower must meet three criteria.
The candidate should have a non-performing loan until the end of 2021, the property for which he/she has received the loan and is not paying should not exceed 250 thousand euros, and he/she should be receiving state aid.
The Cyprus Asset Management Company (KEDIPES) will play the most important role in this project. Thus, its operations will be expanded so that the organization will buy properties from banks and then 'rent' them to vulnerable borrowers.
[This article was translated from its Greek original]