To date, 1,647 borrowers have applied to be included in a state-backed mortgage relief scheme, with 350 already rejected, it emerged on Thursday.
According to the Cyprus News Agency, 301 applications were at the approval stage of being included in the Estia scheme while 350 have been rejected.
Some 200 applicants were deemed unviable and their cases will be handled by the finance ministry. Finance Minister Constantinos Petrides had said in the past that the government would look into other schemes to assist those who could not repay their loans.
The Estia programme was proposed in the wake of the 2013 financial meltdown to help people with non-performing loans (NPLs) retain ownership of their main residence. The plan would also contribute to deleveraging Cypriot banks.
Banks have until the end of this month to submit applications to the labour ministry. Unviable applications will be processed after the examination of all other applications. To be eligible for the scheme, borrowers must meet certain wealth, income, and other criteria. They must also come to an arrangement with the bank regarding the restructuring of their loans.
Those qualifying for the relief will see their home loan written off by at least 5 per cent, where the value of the mortgaged home is higher than the loan amount; in cases where the home value is lower than the loan amount, the amount written off is the difference between the market value and the loan amount.
From the amount remaining after the loan write-off, the state will pay 33 per cent of the installments.
Source: Cyprus Mail