Nicosia is waiting for the European Commission’s green light for the implementation of the ‘Mortgage to Rent’ scheme in Cyprus by January 1, 2023 in a bid to protect vulnerable borrowers.
The scheme will specifically benefit those borrowers who cannot restructure their loans secured against their primary residence, Philenews also reported on Friday.
The purpose of the scheme, of which Kedipes (Cyprus Asset Management Company) is the implementing entity, offers an alternative and definitive solution.
Because people can transfer ownership of their primary residence to Kedipes while keeping residency in their home without any other financial burden. The rent will be paid in full by the state over the long term.
Kedipes is an entity developed after the collapse of the Cyprus Cooperative Bank.
The ‘Mortgage to Rent’ scheme is expected to cover several thousands of vulnerable borrowers as well as pensioners over the age of 65.
Eligible for the scheme are those who had non-performing loans secured against a primary residence, the market value of which cannot exceed €250,000.