Insider Economy Additional safety net provisions included in fledgling ‘Estia’ scheme

Additional safety net provisions included in fledgling ‘Estia’ scheme

Additional safety net provisions have been included in ‘Estia’ scheme so as to assist, support and protect vulnerable households who have mortgaged their primary residences. And not to reward strategic defaulters, insiders told Phileleftheros.

The ‘Estia’ mortgage relief scheme was officially launched on Monday and only applies until the income and assets of a beneficiary are improved. That is, when these are increased by 30% then the State will immediately stop paying 1/3 of the instalment of his/her restructured loan.

The mandate of a special committee to be set up, that will also include officers from the Ministries of Labour and of Finance, is the thorough  review of a beneficiary’s income and assets prior to handing out the annual grant.

The review of applications is set to be carried out before the end of the year, since the state grant will be handed shortly afterwards and, specifically, within the first quarter of the new year.

The procedure to be followed for the review of applications has not been drafted out as yet. However, it is expected that a beneficiary’s  bank accounts will be audited, plus the Land Registry will also be asked to give information on his/her state of play.

After a beneficiary’s financial situation is improved, he/she will not be asked to pay back the grant received from the State. But the loan subsidy will simply come to an end.

‘Estia’ applies to loans (mortgages) that were deemed non-performing on September 30, 2017. Loans designated as non-performing after that date are not eligible. The primary residence which is mortgaged must have a maximum market value of up to €350,000.

‘Estia’ applies to the first mortgage on a residence, and covers loans or credit facilities regardless of currency.

Total household income of the applicant must not exceed the following:

  • €60,000 for a family with at least four dependents;
  • €55,000 for a family with three dependents;
  • €50,000 for a family with two dependents;
  • €45,000 with one dependent;
  • €35,000 for a couple with no children;
  • €20,000 for a single-member household.

An applicant’s other net assets in 2016, 2017, and 2018, must not exceed 80 per cent of the market value of the main residence after its evaluation.

In any case they should not exceed €250,000.


Read more:




Top Stories

Bill Withers, soulful singer of ‘Ain’t No Sunshine,’ dead at 81

Bill Withers, a soulful singer best known for the 1970s hits "Lean on Me," "Lovely Day" and "Ain’t No Sunshine," has died at age...

Post Office mobilises Parcel24 service in fight against Covid-19

Cyprus Post is mobilising the 24-hour Parcel24 locker systems to boost efforts to contain the coronavirus by helping the public avoid visiting the Post...

Customer service by Social Insurance Services amid Covid-19 measures

The Social Insurance Services, within the framework of preventive measures to address COVID -19, inform the public that the online application / JCC Smart...

House doubles fine for Covid-19 decree, approves prison measures

The House of Representatives on Friday approved a government bill doubling the out of court fine for violating the stay at home decree from...

One more dies, 40 test positive for coronavirus

One more person has died, a man aged 64 with underlying health conditions, the Health Ministry said on Friday, and another 40 people have...


Village olive pie

Mix the yeast with the lukewarm water and put it aside for about 12-15 minutes to settle.  Sift the flour with the salt into...

Skordalia (Garlic paste)

Rinse the potatoes and place, unpeeled, in a saucepan. Cover with water, add salt and allow to simmer for 20-30 minutes until soft. Drain,...

Village salad

A must-have with every meal is a village salad. You will find it in every tavern or greek restaurant you visit in Cyprus. Make...

Courgettes with eggs

Heat the oil in a frying pan and fry the courgettes at a medium heat until they soften. Add salt and add the eggs....