For several months now, on the initiative of the Bank of Cyprus, the new Estia plan (“Vesta” Plan) has been developed exclusively for vulnerable categories of borrowers.
The initial design concerned exclusively Bank of Cyprus customers, but the mood and intentions of YPOIK extended both the perimeter and the terms of the plan, in order to cover the banking system more widely.
The Vesta Plan (new Hestia) will concern vulnerable borrowers who have applied through the Hestia plan and have not been deemed viable due to income criteria.
According to initial estimates, these borrowers make up up to 1/6 of the borrowers who fall within the criteria of the original Estia plan, but can not be described as “sustainable”, based on their existing income data.
These borrowers are primarily x amilo or zero income or EIO recipients. Additionally , they are close to the age limit or they are single-parent families or people with serious illnesses or a combination of the above.
According to banking sources who spoke to Insider empirically, they have noticed that many of these borrowers, who are close to the age limit, want to secure the option of inheriting their children the mortgaged permanent residence, in order to stay in the family. Thus, in the elaboration of the new plan, an important goal is the protection of the permanent residence with the aim of its final transfer to the heirs of the borrower.
In the above case, the following options will be offered, in order to give the opportunity to maintain permanent residence within the family:
o the introduction of a new borrower who is a close relative of the original first borrower ,
o possible adjustment of the installments with the inclusion of the new borrower,
o possible extension of the loan,
o possibly flexibility in repayment, with the logic of “pay as you go” and
o possible one-time payment of part of the loan free of charge
At the same time, it is examined whether the above options can cover the other categories of vulnerable borrowers, which are targeted by this Plan.
It is noted that the new Plan is not excluded, in some cases and under certain conditions it includes a partial write-off of the loan, in order to make it viable or to be repaid immediately.
According to a well-informed source of the Bank of Cyprus in general, they consider the Home Plan to be quite successful since it has helped exactly the category of borrowers for whom it was designed.
“It has also been found that several borrowers who were initially considered potentially eligible, have extra income or property, so they do not eventually fall into the Home, so the final perimeter of the Home is ultimately smaller than originally estimated. However, there are many cases of our fellow citizens who fall within the parameters of Home, but are not financially viable. These are the cases that we as a society are called to deal with, but today there are not many options. We see single-parent families, illnesses, low incomes, or many of our clients who are at an age where we are not allowed to proceed with loan extension. With this new plan, which is a kind of “alternative Home”, we can, among other things, ensure not only the first home of our customers, but also the ability to inherit it to the children of the borrower, something very important for our society. . The elaboration continues, while the Ministry of Finance makes its own moves and analyzes to cover the whole society and to strengthen the new Plan “, he concluded.
