A total of 700 borrowers with non-performing loans (NPLs) amounting to about €173 million were deemed non-viable for loan subsidisation under the Estia scheme, sources told the Cyprus News Agency on Friday.

Excluding the NPLs held by the state-owned Cyprus Asset Management Company (Kedipes), the non-viable loans held by the Cyprus banking system amount to about €100 million.

Non-viable accounts were classified according to specific reasons so that they will be managed by the state in a uniform way according to their individual characteristics.

The same sources told CNA that 708 borrowers have been approved for the Estia subsidy with loans amounting to €165 million, of which 40 per cent are held by Kedipes.

Under the Estia scheme, eligible borrowers with loans using primary residence as collateral valued at up to €350,000 in value will receive a state subsidy amounting to one third of their monthly installment of the restructured loan facility. The scheme was approved by the European Commission’s Directorate for Competition.