The Council of Ministers on Wednesday approved the “Rent vs Instalment Scheme,” Government Spokesperson Konstantinos Letymbiotis announced.
Letymbiotis explained that the scheme aims to assist vulnerable households by allowing them to reside in properties as tenants while being relieved of their mortgage loans, with the state fully covering the required rent. Furthermore, the existing owners of the property or their first-degree relatives will have the option to repurchase the house after five years at a favourable price below market levels.
The eligibility criteria for the scheme were also outlined by Letymbiotis. Recipients of social benefits with non-performing loans as of December 31, 2021, that remained non-performing on December 31, 2022, and have a market value of up to €250,000, are eligible to join the scheme.
Additionally, the scheme includes applicants of ESTIA and OIKIA plans who were assessed as eligible but non-viable, with a market value of up to €350,000. The third category consists of applicants approved for inclusion in these plans but subsequently had their inclusion terminated.
Letymbiotis emphasised that the scheme aligns with the government’s objectives of reducing non-performing loans and enhancing affordable housing. He described it as an innovative plan that offers a definitive and equitable solution for the repayment of housing non-performing loans, thereby protecting vulnerable households.
Regarding the potential referral of three bills by the President of the Republic, in case his foreclosure proposal does not receive parliamentary approval, Letymbiotis stated that the government is observing the developments in the upcoming plenary session of the Parliament. He called on all responsible political forces in the country to carefully review the package of measures presented by the Ministry of Finance.
Letymbiotis expressed the government’s belief that a comprehensive approach to non-performing loans and foreclosures, encompassing the measures proposed by the Ministry of Finance along with an additional legislative proposal submitted by Diko, Depa, and Edek, will effectively address the long-standing issue that has impacted the economy and society over the past decade.