Insider Economy FinMin says scheme for responsible borrowers is not feasible

FinMin says scheme for responsible borrowers is not feasible

Finance Minister, Harris Georgiades, said on Monday that a new scheme for responsible borrowers does not appear to secure the approval of the European Commission.

The Ministry has conducted deliberations with the Commission but it does not seem to be particularly feasible or right and there was a negative indication by the Commission regarding a scheme for borrowers that can repay their loans, Georgiades told the House Committee on Financial and Budgetary Affairs.

These schemes are implemented with the taxpayers’ money, said Georgiades, and the state believes that if there are any resources these should be made available to individuals who are not covered by the “Estia” scheme, adding that the state already implements loan installment or rent subsidy schemes.

He said, moreover, that the interest rate paid by borrowers has declined significantly through the gradual consolidation of the banking sector.

The Minister stressed that borrowers who are not considered viable and therefore eligible for the “Estia” scheme should also submit an application that in turn would be classified by the government under a separate category to be further examined.

Those applications, he said, will be considered pending and the banks will not be able to take measures to put the residence up for auction.

For further measures to be taken, he noted, the borrowers must submit their applications along with all supporting documents. Unless these applications are received, he said, a plan cannot be drawn up.

Georgiades said that a scheme identical to the “Estia” is being prepared for borrowers of the House Financing Organisation who have built a house in state land while a special scheme for loans at the Central Agency for Equal Distribution of Burdens is ready.

Governor of the Central Bank of Cyprus, Constantinos Herodotou, said that the Central Bank has been working on a mechanism regarding auctions whereby people who feel that they are treated unfairly can submit their complaint.

He said that first they will hold consultations with the Single Supervisory Mechanism in order to secure the approval of the European Central Bank. This mechanism, he added, will examine the way different cases are dealt with at court, but it will not give strategic defaulters excuses.

(Cyprus News Agency)

Top Stories

Cyprus ranks in top 10 countries in COVID Performance Index of almost 100 countries

Cyprus ranks in the top 10 countries in a COVID Performance Index of almost 100 countries for their successful handling of the coronavirus pandemic,...

Partly cloudy on Thursday with local rain, isolated thunderstorms

Partly cloudy on Thursday with local rain and isolated thunderstorms as well as light snowfall in the afternoon in high mountains. Winds will initially be...

UNFICYP renewal’s draft text approved, set to be adopted late on Thursday

UN Security Council members have agreed on the text of the draft resolution for the renewal of the UN peacekeeping force in Cyprus (UNFICYP)...

128 new cases, three deaths announced on Wednesday

The Health Ministry announced the death of three persons due to COVID-19. This raises the death toll from the virus in Cyprus to 193,...

Where to get antigen rapid tests between Thursday and Sunday

The Health Ministry announced the following antigen rapid test sites during the period 28-31 January 2021: LIMASSOL Church of Agios Ioannis Eleimon, Limassol 08:30-18:30 Cultural Center Mesa...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...