Filenews 9 February 2023
It has prepared a Rent Against Instalment Plan as part of the policy to mitigate the social impact of non-performing loans, the Ministry of Finance reports and notes who its beneficiaries are.
The main purpose of the Scheme, according to the Ministry of Finance, is to protect the main residence from any sale and settlement of non-performing housing loans of vulnerable population groups with low or no incomes.
Beneficiaries for inclusion in the Scheme are:
(a) recipients of social benefits who had non-performing loans on 31/12/2021, and which remained non-performing on 31/12/2022, secured by the main residence with a market value of up to €250,000, as well as
(b) all applicants to the Estia and Home Schemes who have been or will be assessed as eligible but non-viable with a market value of a primary residence of up to €350,000.
By its decision, the Council of Ministers has approved the Plan, subject to any final amendments that will be required by the European Commission.
The Ministry of Finance, in the context of the pre-notification procedure, is already in advanced consultation with the Directorate-General for Competition of the European Commission on the parameters of the Plan in order to ensure its compatibility with the Community rules on State aid.
Finally, the Ministry of Finance states that after receiving approval from the European Commission, the Ministry of Finance will issue a call for expressions of interest for participation in all credit institutions and credit acquiring companies. The participation of all banking institutions and credit-acquiring companies will contribute to the success of the Scheme as long as this will not exclude any potential beneficiary and will be a practical indication of their corporate social responsibility.
