ECONOMY

First subsidies to borrowers paid out

first-subsidies-to-borrowers-paid-out

At the very end of 2019 the state paid the first four subsidy tranches of mortgage loans for as many borrowers who have had their bank debt repayments arranged through the online platform of the Special Secretariat for Private Debt.

The Finance Ministry announced that, “on December 31, for the first time in Greece, the first state subsidy payments aimed at saving primary residences were implemented. The first subsidy payments were made to four citizens who had their debts to banks arranged in a favorable manner in the context of Law 4605 of 2019. The subsidy rate for the monthly installment of the loan ranges between 40 and 50 percent. This has successfully concluded the online procedure for the payment of state subsidies aimed at saving the primary residences of vulnerable households.”

Although borrowers originally viewed the new settlement instrument with great reservation, interest grew considerably in the last month of 2019, with applications increasing by 65 percent compared to November.

It is becoming clearer that the extension of the platform’s operation to April 30 will be the last one, and that the new protection framework to succeed it will be far stricter.