European Commission approves interest subsidy scheme for housing loans

15:01 - 20 February 2024

Real Estate Reporter

The European Commission's DG of Competition has approved an interest subsidy scheme for housing loans concluded between 1 January 2022 and 31 December 2023 and concerning the purchase or construction of a primary residence for families with an annual income of €50,000.

Speaking during a 20 February press briefing at the Presidential Palace, Government Spokesperson Konstantinos Letymbiotis said that the DG Competition has decided that the scheme does not contain any element of state aid, either to the credit institutions that will participate or to the natural persons who are the final beneficiaries and therefore it can be applied.

The Spokesperson said that "targeted, substantial measures to support households are at the heart of the government's policies."

The scheme will have an annual fiscal cost estimated at €20 million and the subsidy will cover a period of 2 years and will amount to 50% of the interest rate increase between the date of the loan agreement and the date of payment of the subsidy, with a maximum subsidy amount of 2 percentage points.

He also said that beneficiaries are households with an annual family income of up to €50,000 who have taken a housing loan of up to €400,000 during the period of 1/1/2022 to 31/12/2023, provided that it is a performing loan.

(Source: CNA)

European Commission approves interest subsidy scheme for housing loans

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