Completion of 'Oikia' scheme's second phase, further €4.2m to be paid

The Treasury of the Republic has approved 79 applications corresponding to 99 loan agreements in the context of the second phase of the 'Oikia' scheme implementation, with an expected payment of €4.2 million plus any additional interest.

Oikia is a government scheme for the management of loans granted under government housing schemes.

In combination with the first phase of the plan, the total approvals amount to 533 applications, 659 loan agreements, and the payment of €21.4 million plus additional interest.

The Treasury of the Republic announced on 29 May, in its capacity as the implementing body, the completion of the second phase of the 'Oikia' scheme, based on the Decision of the Council of Ministers dated 29 October 2024, within the revised timetable set by the European Commission.

As stated, "with the effective cooperation of the Ministries of Finance and Labour, the Office of the Commissioner for Personal Data Protection, the Cyprus Bankers Association, credit institutions, and other partners, with a view to their inclusion in the scheme, the eligibility criteria of 112 applications have been assessed, relating to 144 loan agreements that were included in the second phase of the scheme's implementation."

It is added that, upon completion of the Treasury assessment, the results have been sent to the Housing Finance Agency, as the only credit institution that has granted loans falling under the scheme, for the implementation of the solutions, i.e. either through the restructuring of the remaining loan capital within the framework of a feasible and viable solution, or by full and immediate repayment of the remaining capital.

It is also noted that the Republic of Cyprus, based on the implementation of the second phase of the scheme, has approved 79 applications corresponding to 99 loan agreements and is expected to pay the amount of €4.2 million, plus any additional interest until the date of the solutions’ implementation.

It is further stated that during the first phase of the scheme, 454 applications were approved, corresponding to 560 loan agreements and a payment by the Republic of Cyprus of €17.2 million, plus any additional interest until the implementation of the solutions.

"Consequently, the total approvals granted under the Oikia Scheme have covered 533 applications corresponding to 659 loan agreements, and the amount of €21.4 million is expected to be paid by the Republic of Cyprus, plus any additional interest, by the implementation date of the solutions," the statement concludes.

The purpose of the 'Oikia' scheme 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.

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.

(Source: CNA)