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Government eyes social programme for borrowers rejected by Estia

January 10, 2020 at 5:06pm
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More than 5,400 borrowers representing more than 50% of eligible non-performing home owners have applied for the government-funded “Estia” scheme, Minister of Finance Constantinos Petrides has said, announcing the government’s intention to launch a social programme for vulnerable borrowers who cannot follow a viable repayment scheme despite a state subsidy.

The Estia scheme aims to assist home owners with non-performing mortgages by providing government support, amounting to one third of their annual payments.

In a written statement, Petrides said that based on preliminary data submitted by banks and credit acquiring companies participating in the scheme, the final number of applications exceeds 5,400 or 50% of the eligible borrowers initially estimated at 10,000.

He thanked borrowers who submitted their applications in a bid to benefit from a “generous state scheme, which aims to protect the primary residence of those who really cannot respond to their obligations.”

Petrides said that after the conclusion of the applications period, banks and other participating institutions will assess the applications and submit the results to the Ministry of Labour, Welfare and Social Insurance for the final evaluation, adding that the implementation of the scheme will render a large part of eligible borrowers as viable.

“For the truly vulnerable borrowers who cannot become viable in spite of the Estia’s generous provisions, and whose applications will be rejected, the government intents in the coming period to proceed with a social programme from which they will benefit,” Petrides concluded.

(Cyprus News Agency)