Rejected Estia applications to be re-examined upon appeal

The number of applications approved for participation in the Restructuring Scheme “Estia” has increased, reaching 1,049. At the same time, appeals for 881 applications that were denied will be re-examined compared to only 543 last March.

Head of the Estia Scheme at the Labour Ministry, Marios Savvides, said that the cases of those who had filed appeals to their rejected applications had been examined and letters explaining the reasons behind the decision, a total of 304, are expected to be sent in the immediate future. Applicants have the right to file a second appeal if needed.

Savvides said that out of the total 6,398 applications that have been submitted, incomplete applications amount to 1,912, while 4,486 concern complete applications, of which 1,049 have received final approval.

A total of 1,947 (45%) applications that were properly filed have been approved.

Savvides further said that 2,507 appeals were submitted of which 881 were approved for re-examination and possible participation in the Scheme while 1,289 were rejected, ten were withdrawn and 23 were obsolete.

The Restructuring Scheme "Estia" is a special scheme prepared by the Government and was approved by the European Commission’s Directorate-General for Competition.

The purpose of the Scheme is to support borrowers with non-performing loans through a significant reduction of their debts and to protect borrowers’ primary residence.

Borrowers, at the end of each year, will receive a Governmental grant equal to one-third (1/3) of their loan instalments (interest and capital), provided that they repay to the Bank the remaining two-thirds (2/3) of their monthly installments (interest and capital) of their restructured loan secured by the primary residence.