Filenews 7 February 2021 - by Frixos Dalitis
With a particularly ambitious and radical plan, the Government is moving forward in order to provide solutions to the heavy burden of non-performing loans, significantly unloading the Cypriot economy.
The Minister of Finance, Konstantinos Petridis, reveals to "F" the Government's plans to ensure the first residence and professional housing, as well as to ensure social cohesion. According to Konstantinos Petridis, his ministry will soon submit a proposal to convert KEDIPES into a national asset management company. The company will proceed to the purchase of the portfolio of non-performing loans of banks, those relating to loans of natural persons by securing the first residence and the first professional residence.
The Finance Minister explains that beneficiaries will be able to make use of specific KEDIPES projects with an increased state contribution or become beneficiaries of the Mortgage to Rent Plan, which will also grant rent to socially vulnerable groups, with the right to repurchase their home in the future at a reduced price.
Konstantinos Petridis also points out that the purpose of the proposal is to keep the state's cash at a high level until market normality is restored and at the same time to achieve a drastic reduction in NSOs beyond the protection of depositors. In order to activate the proposal, the approval of the European authorities is required.
The Minister also makes particular reference to the exit to international markets by roughly doubling the state's cash and also analyses the state of the economy due to the pandemic, as well as development plans using European funds.
