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Cyprus

Estia beneficiaries should not worry about eviction, says Averof

Borrowers with non-performing loans (NPLs) with a mortgage on their primary residence, the value of which does not exceed €350,000, should not worry about being evicted, Disy president Averof Neophytou said on Wednesday.

Speaking after a meeting with the association of Cyprus Banks, Neophytou said that even if borrowers of NPLs receive an eviction notice, banks will not be moving forward with the eviction before assessing whether the borrowers fall under the terms of the Estia debt-relief scheme.

Those borrowers whose primary residence is valued below €350,000 fall under the scheme’s terms, and so are exempt from bank evictions, Neophytou said.

The stated purpose of Estia is to assist, support and protect vulnerable households who have mortgaged their houses for their loans.

To be eligible, a household must have a declared gross income of €50,000 to be eligible, and their primary house, which is mortgaged, must have a maximum market value of €350,000.

The loans will be written down to the market value of the primary residence and then the borrower will have to pay two-thirds of the rescheduled loan every month and the taxpayer (the state) is going to subsidise the one-third of the monthly instalments on that rescheduled loan.

It applies to loans (mortgages) that were classed as non-performing as at September 30, 2017. Loans designated as non-performing after that date are not eligible.

In January, legislators gave the nod to the release of the first €33m, earmarked for this year alone, in taxpayers’ money to fund the scheme.



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