EARLIER today, the Cabinet approved a scheme aimed at protecting the primary residence or business premises of crisis-stricken debtors against repossession by the banks.
The scheme, which will be managed by the state-owned Cyprus Land Development Corporation (CLDC), will subsidise the interest on mortgages in default by up to 4% for a period of up to four years.
Small debtors wishing to take advantage of the scheme must own a residence or business premises worth no more than €250,000. The debtor must have exhausted all other avenues available, including applying for a restructuring of their debt and the process of mediation by the financial services commissioner and the insolvency authority.
Interior Minister Socrates Hasikos said that the scheme offers adequate protection for vulnerable groups against property repossession. He said that the scheme will be applied for two years initially, with a possible extension for a further two years.