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Borrowers consistent in repayments left out of Estia scheme

September 10, 2019 at 9:03am
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Cyprus Finance minister Harris Georgiades has told the House Finance Committee that state handouts to borrowers who are consistent in their home mortgage repayments are out of the question.

And that after mortgage-relief Estia scheme, which was launched on September 2, the government can only implement two additional plans in support of borrowers with red loans.

So far, only 53 applications have been submitted for Estia scheme which is for struggling primary home owners. The deadline is November 15.

Georgiades also said the government intends to devise additional arrangements to include two categories of distressed borrowers currently not eligible for debt relief through Estia.

The first category involves borrowers of the Housing Finance Corporation who do not possess a property title as they built their home on state land. And the second involves borrowers of the Agency for Equal Distribution of Burdens.

Following approval by Cabinet, those eligible to benefit from these two new schemes will be made clear after all Estia applications have been submitted.

Georgiades also told MPs yesterday that the European Commission does not give the green light for handouts to borrowers consistent in their repayments and explained that tax payers money cover these sort of schemes.

“If there are additional available funds, these should go towards struggling borrowers not eligible to join Estia scheme since they cannot meet the set requirements. And not to those who can meet their obligations,” he added.

The Minister also reminded that borrowers consistent in their repayments have already been benefiting from interest rate cuts over the recent years. Mortgage interest rates have fallen by 50%, he stressed.

 

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