Nicosia eases pressure on bad debtors
Τhe Cypriot cabinet on Wednesday approved the “Rent vs Installment Scheme,” government spokesperson Konstantinos Letymbiotis announced 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 with nonperforming 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 NPLs as of December 31, 2021 which remained nonperforming by December 31, 2022, with a market value of up to 250,000 euros.
The second category of beneficiaries comprises applicants for the ESTIA and OIKIA housing plans who were assessed as eligible but non-viable, with a market value of up to €350,000. Finally, the third category includes applicants who had been approved for inclusion in these plans but had their inclusion terminated.
