ECONOMY

Gefyra gets three-month extension

gefyra-gets-three-month-extension

The Finance Ministry submitted a law amendment to Parliament on Monday about granting a three-month extension to the Gefyra program for the protection of the main residence of borrowers who need more time to arrange the repayment of their debts to their lender.

This means the Gefyra program, which was supposed to last until the end of this year, is now extended until March 31, 2021. Until then, borrowers can reach a settlement agreement for their nonperforming loans with banks and bad-loan management companies.

Once a settlement has been reached, borrowers will continue to collect the state subsidy for their mortgage loans for another nine months. The latest that the subsidy can start will be April 1, 2021, and the state support may last up to end-December. That extension was deemed necessary in accordance with the three-month extension to the payment moratorium.

The same amendment also provides for the postponement of when the new bankruptcy code will start applying, especially regarding the capacity of individuals and small enterprises to resort to the extrajudicial mechanism in order to settle their dues from loans or from debts to the state.