Cyprus: Authorities Are Discussing the Creation of a Second ESTIA Scheme

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Cyprus parties Disy and Diko, as well as the Minister of Finance and Minister of Labour of Cyprus intend to approve the second housing scheme in the near future. This will allow low-income families to pay off their debts to credit organisations in Cyprus and the state to pay off non-performing loans to banks.

ESTIA is a federal program aimed at solving the problem of non-performing loans in Cyprus by assisting low-income people. ESTIA is applicable to households, small and medium-sized enterprises whose owners are unable to pay loans for the purchase of primary housing, reside in Cyprus and have real estate worth up to € 350,000.

It is planned that in the framework of the program in 2019 about 33 million euros will be allocated from the budget to the ESTIA fund, which will be used to cover the debt to Cypriot banks.

The proposal of the officials will be sent to the Cabinet of Ministers of Cyprus for approval, after which the Parliament will vote “for” or “against” the distribution of funds from the state treasury; this should happen before the adoption of the state budget for 2019.