Borrowers are very interested loans rate subsidies, following the new hike from the European Central Bank.

These are active borrowers of mortgage loans (and small businesses ) provided to the vulnerable by the four systemic banks.

Through the dedicated application platform, applications have already been submitted, approaching 23,000. The four systemic banks have taken over the subsidies for customers of other banks as well.

These figures were given by Finance Minister Christos Staikouras, speaking in Parliament yesterday. By February 6 (the platform was opened on the first of the month) 22,909 applications had been received.

From these applications:

• 13,509 are active and not finalised
• 8,339 are finalised and awaiting data extraction
• 1,061 have already received a vulnerable household certificate

How the subsidy is given interest rate subsidy

Borrowers can apply for the interest rate differential subsidy on the monthly instalment of their loans.

The four systemic banks have committed to cover 50% of the increase in the monthly loan instalment due to the rise in interest rates (with the calculation date of the increase being 30/6/2022). They will subsidize not only their own customers, but also the loans held by non-systemic banks. Loans that have been sold or securitised will also be subsidised.

The subsidy will apply to existing up-to-date debts, i.e. loans up to 90 days in arrears and with the reference point (for up-to-date or not) being the date of the submission of the request by the creditor.

Duration and beneficiaries

The duration of the subsidy will be for 12 months from the time the application is finalized on the platform and the borrower receives the vulnerability certificate. The first subsidies are expected to be credited to the beneficiaries in April, and the subsidy will be discontinued if the borrower becomes delinquent in servicing his/her instalment for a period of more than 30 days.

Beneficiaries of the subsidy are borrowers with a mortgage loan and/or a small business loan secured by a security interest in the first home. They must meet the income criteria of vulnerability, i.e. annual income of up to EUR 7,000, increased by 3,500 euros per family member, with a limit and maximum annual income of 21,000 euros, a maximum value of the main residence of 180,000 euros and total deposits of up to 7,000 euros, increased by 3,500 euros for each family member, with a limit of total deposits of 21,000 euros.