The "Rent vs Instalment Scheme" was approved by the Council of Ministers today, as announced by Government Spokesperson Konstantinos Letymbiotis after the conclusion of the Council. The European Commission's Directorate General for Competition had previously approved the scheme on July 6.

Under this scheme, vulnerable households will have the opportunity to reside in a property as tenants while being relieved of their mortgage loan. The state will fully cover the required rent on behalf of individuals. After a period of five years, the existing owners of the property or their first-degree relatives will have the option to repurchase the house at a favorable price below market value.

Letymbiotis clarified that the eligibility criteria for the scheme include recipients of social benefits who have non-performing loans as of December 31, 2021, and those loans remained non-performing until December 31, 2022. The market value of the property should not exceed €250,000.

The second category of beneficiaries comprises applicants of ESTIA and OIKIA plans who were assessed as eligible but non-viable. The market value of their property should not exceed €350,000. The third category consists of applicants who were initially approved for inclusion in these plans but later had their inclusion terminated.

According to Letymbiotis, the plan aligns with the government's objectives of reducing non-performing loans and strengthening affordable housing. He emphasized that, by Cypriot standards, this innovative plan provides a definitive and fair solution for the repayment of housing non-performing loans and the protection of vulnerable households.

Regarding the President of the Republic's potential referral of three bills to Parliament in case his proposal on foreclosures is not approved, the Government Spokesperson stated that the government is awaiting the development of the debate in the upcoming plenary session. He urged all responsible political forces in the country, both executive and legislative, to carefully consider the package of measures sent by the Ministry of Finance.

The government believes that by implementing the package of measures presented by the Ministry of Finance and considering an additional legislative proposal from DIKO, DEPA, and EDEK, a comprehensive approach to non-performing loans and foreclosures can be achieved. This approach will protect vulnerable borrowers and ensure the economic credibility and stability of the country. The issue of non-performing loans and foreclosures has been a persistent problem for the economy and society over the past decade.