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22 February, 2024
 
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Relief for vulnerable households with non-performing loans

Rent vs Instalment scheme offers rental assistance and favorable repurchase options to address housing loan challenges

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The "Rent vs Instalment Scheme" was approved by the Council of Ministers today, as announced by Government Spokesperson Konstantinos Letymbiotis following the conclusion of the Council. The European Commission's Directorate General for Competition also granted approval on July 6.

Under the scheme, vulnerable households facing non-performing loans can become tenants in their current property while being relieved of the mortgage loan. The state will fully cover the required rent on their behalf. After five years, the existing owners or their first-degree relatives will have the opportunity to repurchase the property at a favorable price below market rates.

Eligibility for the scheme includes recipients of social benefits with non-performing loans as of December 31, 2021, which remained non-performing by December 31, 2022, with a market value of up to €250,000. The second category of beneficiaries comprises applicants of ESTIA and OIKIA plans who were assessed as eligible but non-viable, with a market value of up to €350,000. The third category includes applicants approved for inclusion in these plans but had their inclusion terminated.

Letymbiotis emphasized that the scheme aligns with the government's objectives of reducing non-performing loans and strengthening affordable housing. He described it as an innovative and equitable solution to address housing non-performing loans and protect vulnerable households.

Regarding the President's potential referral of other bills, if his proposal on foreclosures is not approved by Parliament, the Government Spokesperson stated that the government is waiting to see how the debate unfolds in the upcoming plenary session. He urged the responsible political forces to carefully consider the package of measures provided by the Ministry of Finance, emphasizing the need to address the long-standing issue of non-performing loans and foreclosures, safeguarding vulnerable borrowers, economic credibility, and national stability.

[Information sourced from CNA]

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Cyprus  |  foreclosures  |  banks  |  homes

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