Applications worth €131.1 million for "Oikia" scheme

Applications for 1,318 potentially eligible loans involving a total amount of €131.1 million were submitted under the Oikia scheme, which is a loan management plan with government funds granted under Government Housing Plans.

A press release issued by the Ministry of Finance says that 14.25% or approximately 199 loans are non-eligible and 946 (70.40%) are eligible, while the eligibility assessment for 173 loans (15.35%) is pending.

It adds that on February 18, 2022, the European Commission approved the extension of the Plan until June 30, 2022 (for the submission of applications) and April 30, 2023 (for the implementation of the solutions) as well as the modification of the income criteria of "Oikia" scheme. It further notes that on March 3, 2022, the European Commission approved a new extension of the completion of the "Oikia" scheme (for the implementation of the solutions) from April 30, 2023 until December 31, 2023.

Regarding the new extension for the implementation of the solutions, the Ministry of Finance states that the Housing Finance Corporation (HFC) should complete the evaluation of the applications and send them for approval to the Treasury by June 30, 2023 and adds that "the completion of the approval process or not by the Treasury should be completed by September 30, 2023 and the implementation of the solutions by December 31, 2023".

In addition, the Ministry of Finance notes that applicants who have been deemed eligible under the Oikia scheme but whose applications have been/will be assessed as unsustainable will be eligible for Rent-To-Mortgage scheme when it is approved by the European Commission. 

The purpose of the "Oikia" scheme, according to the Ministry of Finance, was to assist first-time borrowers who have taken out loans with government funds (Low-Income Couples Housing Loan Scheme) with a mortgage on their 1st home either through the Single Housing Scheme or with co-financed funds or these loans have been granted by banking institutions under certain conditions such as the construction of a residence on Government Land or Turkish Cypriot Land or in an area under the sovereignty of the British State and were overdue for more than 90 days on December 31, 2019.

It also notes that with the plan, the beneficiaries of these loans were given the opportunity after submitting an application to proceed with the settlement of the balance of their loans either with the restructuring of the outstanding loan within the framework of a feasible and sustainable solution or with the full and immediate repayment of the outstanding loan.

It adds that the remaining capital is the issued capital based on the initial approval plus the charges for life and fire insurance, minus the repayments of the borrower from own resources until the date of adjustment or repayment based on this scheme.