Cabinet on Tuesday approved the Estia plan for vulnerable borrowers as well as the establishment of an asset management company.
It also accepted the resignation of the board of the Cyprus Cooperative Bank.
The Estia plan will cover individuals with an income of less than €50,000 and assets excluding the mortgaged home not exceeding 125% of the value of the mortgage on the home. Those approved will receive a subsidy for 1/3 of the restructured loan instalment on their housing loans. The scheme also covers business loans that have a primary home as collateral.
An estimated 15,000 borrowers are expected to be eligible, and the required sum of some €30m has already been included in the 2019 budget.
The Estia scheme was approved by Cabinet within the context of the setting up and operation of an asset management company for NPLs at an urgent meeting on Tuesday.
Government spokesman Prodromos Prodromou said the board of the CCB had resigned and its resignation had been accepted by cabinet. He said they will remain at their posts until the setting up of the asset management company.