Very close to the announcement for suspension of installments is the financial staff of the Government. The new suspension of installments, which is most likely to cover a period of six months, will be implemented in the form of a public moratorium, with the issuance of a relevant decree by the Minister of Finance and on the occasion of the upcoming restrictive measures for the pandemic. However, sources tell Economy Today that any decision has been preceded by consultation with credit institutions and supervisory authorities, just as in the previous period with the nine-month Moratorium that ended on December 31, 2020.
It is emphasized that the forthcoming extension of installment suspension does not apply to all borrowers but only:
- Borrowers who did not take advantage of the possibility of installment suspension in the previous nine months that the Moratorium was in force
- Borrowers who exercised the right of suspension but not for the entire nine-month period of the Moratorium
It is also noted that it is possible that loans concerning a first home up to 350.000 euros will be included in the forthcoming decisions, in the loans that will have the possibility of installment suspension.
Speaking on Radio Proto's First Show, Solidarity MP Michalis Giorgalas, explaining why the new Moratorium does not apply to all borrowers, said: was the only country to make extensive use of this facility. " Specifically, Mr. Giorgalas stated that "20% was used elsewhere, while in Cyprus it exceeded 43%, which translates into loans amounting to more than 11 billion".
In addition, the banks emphasize that in the case of Cyprus, the period of nine months of the Moratorium is a peculiarity compared to the other states that implemented similar measures but for a much shorter period of time.
It is underlined that with the expiration of the nine-month Moratorium on December 31, 2020, each Bank sees separately its borrowers who had suspended the payment of their installments in order to arrange the resumption of payment. Clients - borrowers who are unable to repay loans due to their difficult financial situation, and there is no room for them to be covered by the new Moratorium to be announced, enter into discussions for restructuring their loan with their banks.