Specifically, yesterday all the owners of housing loans, whose management has been handed to doValue Greece, received the following SMS message:
“THE GOVERNMENT IS EXPECTED TO ANNOUNCE THE SUBSIDY PROGRAM FOR LOANS BACKED BY THE MAIN RESIDENCY FOR THOSE AFFECTED BY THE PANDEMIC. THE SUBSIDY WILL COVER PART OF THE LOAN PAYMENT UNDER THE SPECIFIC TERMS OF THE PROGRAM. KEEP PAYING YOUR LOAN PAYMENTS WITH CONSISTENCY.”
The criteria for the subsidy
According to the current plan, as final talks will be held with international creditors next week, the state will subsidize the mortgage installment for all households affected by the economic crisis due to the pandemic, based on specific criteria regarding its value, income and asset levels.
The “bridge” program, as described by the Finance Ministry will cover the subsidy for nine months for borrowers who have lost their jobs, part of their salary or seen a drop in income in the case of small businesses who have mortgaged their first home.
Greece’s creditors, through their lower level technical teams, have requested that the same criteria that exist today for the protection of the first residence through law 4605 continue to apply. The criteria are:
• The objective tax value of the main residence does not exceed 175,000 euros if debts include business loans and 250,000 euros in other circumstances.
• The family income should not exceed 12,500 euros. This limit increases by 8,500 euros for the spouse and 5,000 euros for each dependent member (up to 3 dependent members).
• The total of outstanding capital should not exceed 130,000 euros per creditor or 100,000 euros per creditor if the debt includes business loans. The unpaid capital includes interest and possible execution costs.
• Real estate assets owned by the applicant, his/her spouse and dependent members, in addition to the main residence, as well as transport means, should not have a value exceeding 80,000 euros for the year the application is made.
• Deposits, financial products of the applicant, his/her spouse, and dependent members should not exceed 15,000 euros.
The subsidy will apply for three types of borrowers:
• Those who were consistent with loan obligations until February 29.
• Those who, up to the same date, were up to 90 days late on their payments.
• Those who had overdue loans for more than 90 days
The loan subsidy provided by the state will be valid for 9 months but will be reduced every 3 months, taking into consideration a gradual return to normal for the economy and a complete reduction of the effects of the crisis by the end of the nine-month period. The Finance Ministry’s proposal aims for a more generous proposal on the subsidy amount and other conditions for consistent borrowers who have been affected by the crisis.
Given that the current regime for the protection of the first home through Law 4605 expires at the end of July, the criteria should be finalized in the coming days, so that the “bridge” program can then be voted on by Parliament and implemented immediately.