ECONOMY

Housing loan subsidy may be extended

housing-loan-subsidy-may-be-extended

The government wants to extend by three months a program subsidizing housing loans for households affected by the economic crisis caused by the Covid-19 pandemic.

Currently, the government estimates it will disburse some €230 million by September 30, while it had budgeted €300 million for it and is doubtful all €70 million can be spent by the program’s expiration at the end of the year. But to extend it, it needs the consent of the country’s creditors, since Greece is still under “enhanced surveillance” following its severe debt crisis.

Gefyra 1 (Bridge 1) subsidizes housing loan repayment installments for nine months at variable rates, starting from 90% and declining every three months.

A second subsidy program, Gefyra 2, has made its first disbursements, worth €44.2 million, to 7,774 recipients with 19,201 housing loans.