The Protection Plan of the First Residence was approved

In the context of the announcement of the President of the Republic Mr. Nikos Anastasiadis for taking measures for protection of the debtors, who are unable to fulfill their obligations regarding the payment of installments for housing and business loans, for which their first residence has been mortgaged, the The Council of Ministers approved today the Protection Plan of the First Residence.

Specifically, the Plan concerns vulnerable groups of the population and in it are eligible to participate those who have received a mortgage loan with a mortgage of their main residence and small businesses (with an annual turnover of up to 250 thousand euros and employs up to 4 people) who have received business loan with mortgage also their main residence. It concerns only mortgages that have been concluded for the construction or purchase of the applicant's residence, as well as business loans that have been taken for the development of the companies. The implementation of the Plan has been assigned to the Cyprus Land Development Organization (KOAG). The Plan provides for the subsidy by the COAG of the interest on the mortgage of the borrower, in order to eliminate the risk of selling his home. The maximum interest rate of the mortgage loan is 4%, while the maximum duration of the Plan is four years.The basic conditions for inclusion in the Plan provide, inter alia, such as:

1. The procedures provided by the Central Bank based on the 2015 Arrears Management Directive for the restructuring of loans have been completed, as well as the mediation procedures set by the Financial-Economic Commissioner and the candidate must have contacted the Insolvency Service.2. The first home must be mortgaged to a financial institution licensed by the Central Bank of Cyprus as collateral for the provision of a mortgage or business loan to the owner of the first home or his spouse.3. The minimum period of permanent residence in the residence to exceed five years.4. The applicant must be a permanent resident of the Republic or have resided legally in the Republic for the last ten years.5. In case the applicant is a beneficiary of the Minimum Guaranteed Income and receives an amount to cover part of their interest then the total amount he will receive from the Plan will be taken into account so that the grant does not exceed the maximum interest rate, which is set at 4%. The main residence is defined as the residence used for the residence of its owner or in case of a financial lease agreement (rental market), of the contractor tenant, for a period of more than six months per year. The house must have an estimated market value which will not exceed a maximum of 250 thousand euros (plus VAT) and the amount of the loan that remains to be repaid must not exceed a maximum of 300 thousand euros. In addition to the above necessary In order for a debtor to be eligible for the First Home Protection Plan, he or she must meet a set of strict income and property criteria that are proportional to the composition of the family. It is pointed out that the total estimated value of the real estate of himself and his family unit should not exceed a total of 100 thousand euros. The residence of the applicant and his family is excluded from the calculation of the value of this property, provided the estimated value does not exceed a maximum of EUR 250 thousand. Applications will be accepted by individuals who are initially judged to be eligible by the Insolvency Advisor.