“The organization has had several years to make such substantial changes”
The changes to the lending plans of the Central Agency for Equal Burden Distribution (KFIKB) are significant and all are for the benefit of the owners of occupied properties, the Director of the KFIKB Loukia Efstathiou states at KYPE, underlining at the same time that “it has several years for the organization to make such substantial modifications”.
The important amendments to the lending Plans promoted by the Agency's Board of Directors and approved by the Ministry of Finance include, among others, according to Ms. Efstathiou, the increase of the amount for a mortgage loan to €200,000 from €130,000, the increase of the interest subsidy at 30 years, up from 20 years before, the cost of living increase in student loans and not factoring in loan or interest rate subsidy plans.
He also mentioned two new lending plans of the Agency and also the renaming of the Loan Plan for the Professional Activity of Young Scientists to the Loan Plan for the Professional Activity of Young Entrepreneurs.
The Director of the Agency said that the Agency's Board of Directors from time to time reviews the Organization's loan plans so that they “respond to the socio-economic conditions of the place and serve as best as possible the greatest needs of the applicants, based on their financial capabilities Organization”.
Within this framework, he continued, “the Board of Directors decided to promote a series of amendments, both to the Regulations of the Pre-War Solvency Rehabilitation Plan, as well as to the Criteria for examining applications and interest rate subsidies, as well as to promote the creation of new lending plans and to expand the beneficiaries of the Plan for the professional activity of the young people of our country”.
In particular, referring to some of the important modifications that will be made to the plans, Mrs. Efstathiou said that these are the increase in the amount of housing loans is important because today someone cannot build a house with only €130,000, adding that by increasing the amount the citizens will be helped and at the same time they will receive an interest rate subsidy from the Agency for 30 years, instead of the current 20 years.
Explaining further, on the matter, Mrs. Efstathiou said that the applicant will have to secure his mortgage loan from a bank and then the Agency will give him an interest rate subsidy of up to 3.5%.
For for example, he said that if a mortgage loan will carry an interest rate of 4.5%, the borrower will pay an interest rate of 1% to the bank and the remaining percentage of the interest rate will be subsidized by the Agency.
Another important thing, according to the Director of KFIKB, is the fact that the loan or interest rate subsidy plans, granted by the Central Agency, will not be taken into account and will be taken into account “each one separately”, without a total ceiling amount, always depending on the value of his possessed property.
He explained that until today the maximum amount that someone could borrow was €130,000 for a mortgage and if someone took out a €100,000 student loan, they would only be allowed to take out a mortgage of €30,000 to cover the amount of €130,000.
With today's amendments, he will be entitled in this case to €105,000 which is the maximum amount of the student loan and another €130,000 for a housing loan, he noted.
In addition, he said that student loans and loans for young scientists concern the Agency's own funds and there will be no need for a commercial bank to provide its own funds.
Mrs. Efstathiou also told the KYPE that the amendments are currently undergoing legal and technical processing by the organization's legal advisor and will then be sent to the Council of Ministers for approval, through the Ministry of Finance, and subsequently for legal and technical control at the State Legal Service. to reach the House of Representatives for a vote.
He noted that the cost of the above amendments does not burden the amount of the existing budget of the Central Body.
The Director of the Agency expressed the hope that they will be immediately examined by the Legal Service so that they will soon be presented to the beneficiaries for lending.
More specifically, the proposals of the Board of Directors of the Agency that have been approved by the Ministry of Finance are the following :
1. Increase of mortgage loans to be subsidized from €130,000 to €200,000 and the subsidy period from 20 years to 30 years.
2. The loan or interest rate subsidy plans, granted by K.F. not to be included.
3. The amounts for refugee and non-refugee beneficiaries should be the same and the cut-off of 20%-40% should still apply: (currently subsidized housing loans for refugees are €130,000 and business loans €105,000, while for non-refugees they are €85,000 minus 20% up to 40% (i.e. maximum eligible amount for non-refugees €68,000).
4. Abolition of income criteria that were put into effect when there was a shortage of funds in order to lend to more applicants.
5. Possessed property, which was used for a loan, which was subsequently repaid to be used again in K.F. provided that the previous loan has been repaid without any aid from the State, e.g. cancellation of interest, loans, etc. (incentive so that the owners of occupied property do not seek to sell the occupied property).
6. Increase in student loan living expenses:
From €8,000 to €10,000 for UK, France, Italy.
From €8,000 to €11,000 for USA, Canada.
From €6,000 to €8,000 for Greece and the rest of Europe.
From €3,500 to €5,000 for Cyprus (area of study different from the area of residence).
7. The amount of the scholarship should not be deducted from the eligible amount of the student loan.
8. In the housing applications, it will not be taken into account if the applicants have another private residence unless they have been approved in the past by K.F. for this residence.
9. Repairs to residences maximum amount from €50,000 to €100,000.
New Lending Plans
Referring to the two new Lending Plans offered by the Agency and which have also been approved by the Ministry of Finance, Ms. Efstathiou told KYPE that one Plan concerns lending for Kitchen Renovation and Purchase of Home Appliances Appliances up to €10,000 and explained that the loan will be for either kitchen renovation only or both together.
He added that the amount will be provided from the Agency's funds, through the Housing Financing Organization.
Regarding the second plan, he stated that this concerns the granting of loans for Energy Upgrades in existing homes up to €15,000, specifically for roof insulation up to €10,000 and for the installation of photovoltaics up to €5,000.
He noted that before receiving the The Board of Directors of KFIKB decided to promote them, carried out market research for the current needs of the world.
The Director of KF said that the Loan Scheme for the Professional Activity of Young Scientists is renamed the Loan Scheme for the Professional Activity of Young Entrepreneurs , aged up to 40, for a loan of up to €25,000.
“Beneficiaries will also be non-graduates, holders of at least a secondary school diploma”, he said and added that this change is being made because it was found that there was not enough interest for the previous plan involved only graduates.
He said there had been enough interest from people in technical professions and “so we decided to expand it”.