In June, the Cabinet of Ministers of the Republic of Cyprus approved the scheme, aimed to protect principal residence and business premises of the debtor from bank withdrawal. The scheme, which will be managed by the state-owned Cyprus Land Development Corporation (CLDC), will subsidize the mortgag interest of debtors up to 4% for not more than four years.
The scheme can be used by debtors, whose cost of housing or business premises does not exceed € 250 000. It may be private buyers who obtained the mortgage loan secured by their primary residence, as well as enterprises with an annual turnover of less than € 250,000 and a staff of up to four employees.
It should be obvious that all the available options of repayment have been exhausted, including the use of the possibility of debt restructuring under the Directive of the Central Bank's management of arrears, as well as mediation of the financial commissioner. In addition, the application for the use of the scheme should be agreed by the arbitration manager.
Applicants must be resident in their mortgaged home for the last five years, to be a permanent resident of the Republic of Cyprus or stay on its territory on legal grounds during the last 10 years.
According to the Interior Minister of the Republic of Cyprus Socrates Hasikos, CLDC scheme provides adequate protection for vulnerable groups. Initially, it will be applied for two years, with the possibility of extension for another two years.
Recall that last year under pressure from the troika of creditors - the European Union, the European Central Bank and the International Monetary Fund, Cyprus was forced to take from 1 January 2015 the law that allows banks to withdraw housing buyers who allowed the delay in payments on the mortgage. The adoption of the scheme softens the harsh emergency measure and is intended to ease social tensions.
Based on materials of Cyprus Property News
Photocredit shutterstock.com
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