SUNDAY, 24 FEB 2019

 

CONNECT

Facebook Linked In Twitter
PwC_CEO_728x90px
GloriaJeans_266x90px
IMH LTD

Prodromou: We Expect the UN to Include Guterres Framework, as Clarified by the UNSG

Wicker: The US has Strong Interest in Cyprus' Reunification

IMH LTD
PwC_CEO_22/02-05/03_468x60px

ECONOMY

EC Approves ‘ESTIA’ Scheme

EC Approves ‘ESTIA’ Scheme

The European Commission has approved under EU State aid rules the Cypriot “ESTIA” scheme to support private households and micro-companies that have encountered difficulties in repaying mortgage loans and risk losing their primary residence. The scheme, which has an annual budget of around € 33 million, sets strict eligibility criteria in terms of the value of the primary residence and income of the borrower to ensure it is targeted at those in need. Eligible borrowers will receive a grant equivalent to one third of their monthly loan payment, provided that (i) their loans are secured against their primary residence; and (ii) they resume paying the other two thirds of their monthly payment. If the borrower stops servicing its loan, it is foreseen that the bank initiates the foreclosure of the property.

All participating banks will have to restructure the loans of eligible borrowers along the same requirements defined by the State. The Commission concluded that, with respect to individuals and micro companies, the measure does not involve any State aid. With respect to the banks that issued the loans, the Commission found that the scheme will provide an indirect advantage because it increases the amount of repayment the banks are likely to receive from the non-performing loans. At the same time, the Commission's assessment showed that this indirect aid would not create undue distortions of competition because the aid is limited to what is necessary to achieve its objective of ensuring that borrowers do not lose the house in which they live.

Moreover, since all mortgage lenders established in Cyprus are able to participate in the scheme, it is non-discriminatory among banks. The Commission has therefore concluded that the scheme is well-targeted and limited in time and scope as required by EU rules. Finally, the scheme is expected to contribute to reduce the high burden of non-performing loans in the Cypriot banking sector. More information will be available on the Commission's competition website, in the public case register under the case number SA.49554.

 

MORE ON ECONOMY

Government Spokesman: No Predetermined Date for ExxonMobil’s Drilling Results

Government Spokesman Prodromos Prodromou has said that the government did not have a ...

Cyprus Trade Deficit at €4.2 Billion in January – November 2018

Cyprus trade deficit for the period of January – November 2018 amounted to €4. ...

Cabinet Approves Fund for the Protection and Insurance of Agricultural Produce

The creation of a fund for the protection and insurance of agricultural produce was ...

FROM AROUND GOLDNEWS

   

Share of Energy from Renewable Sources in Transport at 2.6% in 2017

The share of energy from renewable sources used for transport in the European Union (EU) stood at 7.6% in 2017, compared with 3.1 % in 2007. Although the ...
   

Unemployment Falls to 7.6%

Unemployment in Cyprus fell to 7.6% of the labour force in the 4th quarter of 2018, from 7.8% in the 3rd quarter, according to the Labour Force ...
   

Confusion Among Businesses about Benefits in Kind

The provision of Benefits in Kind is a practice currently followed by a significant number of businesses across Cyprus, with the aim of both creating an ...
   

Celestyal Cruises: New Goals and New Itineraries for the Year Ahead

Enjoying a dynamic presence in Greece and Cyprus, Celestyal Cruises, a member of the Louis Group, recently published official results for 2018, highlighting ...
   

Government Spokesman: No Predetermined Date for ExxonMobil’s Drilling Results

Government Spokesman Prodromos Prodromou has said that the government did not have a predetermined date for the announcement of ExxonMobil’s drilling ...
   

Trump: US Shouldn’t Block Technology

US President Donald Trump has said he wants the US to become a technology leader through competition rather than by blocking others, the BBC reports. Trump ...
   

Wicker: The US has Strong Interest in Cyprus' Reunification

Vice President of the Parliamentary Assembly of the Organization for Security and Co-operation in Europe, US Senator Roger Wicker has said that the US has a ...
   

Cathedral City Firm to be Bought for £975M

Dairy Crest, whose brands include Cathedral City cheddar and Country Life butter, has agreed to be bought by a Canadian company in a near-£1bn deal, the ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

NewCyTech_22/02-22/04_300x250px
Gold_Digital_Edition_300x250px

IMH LTD