16.03.2023
The Ministry of Finance announced on Thursday that 1,318 applications have been submitted that could potentially qualify for a loan totaling €131.1 million under the Oikia housing scheme .
This scheme was designed to help manage loans with public funds provided under public housing schemes.
The ministry said in a statement that 199 loans, or about 14.25%, are ineligible and 946 loans, or about 70.40%, are eligible. Meanwhile, 173 loans, or approximately 15.35%, are awaiting eligibility assessment.
On February 18, 2022, the European Commission approved an extension of the plan until June 30, 2022 for the submission of applications and until April 30, 2023 for the implementation of decisions.
The income criteria for the Oikia scheme have also been changed. The European Commission has approved a new extension to the completion of the Oikia scheme until 31 December 2023, 3 March 2022.
With regard to the new extension of the deadlines for the implementation of decisions in terms of managing the loans involved, the Ministry of Finance stated that the Housing Finance Corporation (HFC) should evaluate applications and submit them for approval to the Treasury of the Republic of Cyprus by June 30, 2023. The approval process must be completed by September 30, 2023, and the implementation of decisions by December 31, 2023.
In addition, the Ministry of Finance states that applicants who are deemed eligible based on the criteria of the Oikia Scheme , but who are assessed as ineligible, will be eligible to be included in the Installment Rental Scheme when the scheme is finally approved by the European Commission.
According to the Ministry of Finance, the purpose of the Oikia scheme is to help first-time public borrowers, i.e., low-income couples who have taken advantage of the government’s Home Loan Scheme, with a mortgage on their first home.
This can be achieved through the Unified Housing Scheme or through co- financing . Loans could also be provided by banks subject to certain conditions, such as the construction of a residence on state land, Turkish Cypriot land, or in territory under the sovereignty of the British state.
Loans must also be overdue by more than 90 days on December 31, 2019.
The beneficiaries of these loans, in accordance with the rules of the scheme, have the opportunity to settle the balance of their loans either by restructuring the remaining capital of the loan in a feasible and sustainable solution, or by repaying the loan in full and immediately with the remaining capital.
Remaining equity refers to the amount disbursed based on initial approval plus life and fire insurance costs, excluding repayments by the borrower using own resources, up to the loan adjustment or repayment date based on the scheme’s criteria.
