Ministerial Decision to amend Interest Subsidy Plans

The Interest Rate Subsidy Schemes for new Home and Business Loans were part of the May 2020 emergency package of measures to support the economy in response to the impact of the pandemic, which aimed to support households to take out home equity loans and improve the prospects of providing liquidity to businesses, including self-employed workers who face a sudden lack of liquidity, in the particularly difficult and extraordinary conditions created by the COVID-19 pandemic.

The application period for participation in the 2 Schemes ended on 31 December 2021 and the process of their implementation is ongoing.

In relation to the 2 Interest Subsidy Schemes for new Mortgage and Business Loans, the total submitted applications amounted to 10.058 for a total loan amount of approximately €1,7 billion. More specifically, 8.960 loans for an amount of approximately €1,36 billion concern new Mortgage Loans and 1090 loans for an amount of €295 million concern new Business Loans.

The Council of Ministers in today's session and taking into account the ongoing effects of the pandemic COVID-19 and the war in Ukraine decided the following modifications of the 2 Plans:

(a) The extension of the disbursement period of the Loans granted on the basis of the Interest Subsidy Plan for new Mortgage Loans, from 2 to 3 years, with retroactive effect from the date of approval of the loans.

(b) The possibility of restructuring the loans granted on the basis of the 2 Interest Subsidy Schemes for new Mortgage and Business Loans, with retroactive effect, provided that the following apply:

(i) no new lending amount was granted through the restructuring;

(ii) the interest rate of the restructured loan has not increased, (iii) they have not undergone a new, second restructuring within the four-year period of their interest rate subsidy,

(iv) the interest subsidy period does not exceed four years from the date of the 1st disbursement of the original loan.