Only one in three eligible beneficiaries of Estia mortgage relief scheme actually submitted an application by end of last week which was the deadline, according to Finance Ministry data.
The data also shows that some 3,000 applications have been submitted even though involved parties expected about 10,000 with a gross amount of non-performing loans (NPLs) amounting to €3.4 billion.
The Estia plan was proposed in the wake of the 2013 financial meltdown to help people with NPLs retain ownership of their main residence. The plan would also contribute to the deleverage of Cypriot banks.
Specifically, out of the 3,000 submitted applications, only one-third of the applications are fully completed, while the rest are partially completed, that is, some certificates and other documents are not there. Today, Tuesday, is the second deadline for submitting applications. Over the last week alone, about 1,000 applications had been submitted to banks.
On Monday, there was an increased flow of applications submitted at banks, the number of which is expected to clear up in the coming days.
Most of the applications submitted the very last minute were at the Bank of Cyprus and Cyprus Asset Management Company (KEDIPES) which have the largest number of eligible Estia plan beneficiaries.
The estimate is that about 2,000 applications have been submitted to the Bank of Cyprus and KEDIPES, with the remaining ones divided between Hellenic Bank, Alpha Bank, Astrobank, Eurobank, National Bank of Greece, the Housing Finance Organisation and Gordian Holdings.
Bank of Cyprus had initially estimated that some 4,000 of its customers with 10,000 non-performing loans worth €840 million met the plan’s criteria. In addition eligible Estia beneficiaries were estimtaed at 7,300 with €1.3 billion of loan balances. And at Hellenic Bank, loans worth around €250 million could be included in the plan.
Potential beneficiaries of Estia plan are those whose loans were non-performing as of September 30, 2017, with the market value of their home not exceeding €350,000.
At the same time, they must also meet specific income criteria ranging from €20,000 to €60,000 depending on the family composition. The state will subsidize 1/3 of the borrower’s installments annually, as of March 2020.
By Eleftheria Paizanou