Letters of approval have begun to be sent to borrowers for participation in the rent-for-installment Scheme, the President of KEDIPES Lambros Papadopoulos told KYPE, who at the same time stated that the total number of applications submitted for participation in the Scheme amounts to 2.092, of which 1.448 have been considered eligible in the first place.
"The flow of approvals has begun and the first approval letters (under ten) have already been sent this week to borrowers," he said and added that it is expected that "within the coming weeks the number of approvals will also increase."
"As we reported, by June we were expected to reach this final stage," he noted.
The purpose of the Installment Rent Scheme, which started in early December 2023 and the application period will close on 6 September 2024, unless an extension is granted, is to protect the Main Residence of vulnerable households through full settlement of the Credit Facility which is secured with Insurance on the Main Residence.
Specifically, Mr. Papadopoulos said that up to Friday, June 21, 2.092 applications have been submitted, of which "1.448 have been initially considered eligible (for participation in the Scheme), based on the initial criteria that have been set", such as among other things, if the applicant is a vulnerable borrower or participated in the ESTIA Scheme and was deemed unviable.
He said that based on initial calculations, eligible households were estimated at around 3.000, while about 50% (1.448 eligible) of those "we thought would be eligible" had applied so far.
With reference to the 1.448 applications, which were initially considered eligible, the President of KEDIPES said that "for most of them there is completeness of documents, as well as eligibility, based on the credit arrangement they have, i.e. they were non-performing loans on December 31, 2022 ” and “it is now in the technical control phase, which is the most difficult part of the process”, which concerns the property more.
"The technical checks, the assessments and then the arrangements of the encumbrances and encumbrances will be made and finally the acquisition of the properties will take place", he explained.
In relation to the borrowers who have been sent an approval letter, Mr. Papadopoulos told KYPE that "all that remains is the process of acquiring the property" which will take a few weeks.
He stated that the initial goal set was the implementation of 800 applications and noted that although the initially eligible applications currently amount to 1.448, it is not expected that all of them will be approved.
"We hope that we will exceed the target of 800 applications because we want as many borrowers as possible to enter the Scheme", said the President of KEDIPES, who called on borrowers who meet the criteria of the rent-for-installment Scheme and have not yet applied, to do so in the coming weeks.
"The positive aspect of the Plan for the borrowers is that all the loan obligations they have that are related to the subject under consideration will be written off and they will be given the opportunity for a new beginning, to rejoin the banking system," he underlined.
At this point, Mr. Papadopoulos reminded that after five years the borrowers will have the right to repurchase their property and noted that the repurchase value of the property is the value with which KEDIPES will have purchased the property from the banks or credit acquisition companies participating in the Plan, i.e. close to 65% of the property's value.
Finally, Mr. Papadopoulos said that some have exercised their right and submitted an objection to the Objections Examination Committee to reject their application.
Source: KYPE