The plan is expected to involve 10 thousand borrowers. The Treasury estimates the gross value of the loans to be incorporated into the Estonia Plan will amount to € 3.4 billion, while the total cost to the state over the 25 years of the project’s life cycle was estimated at € 815 million (33 EUR million per year).
Potential beneficiaries of the Estonia are borrowers whose loans were unsecured on September 30, 2017, while the market value of their home should not exceed € 350 thousand. 20 mm to 60 mm and depending on the family composition. The state will subsidize 1/3 of the amount of borrowers joining the Plan each year. The first payments by the state are due around March 2020.
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The banks have already contacted their clients who meet the criteria and some of them have already prepared their applications, which are posted on the website of the Ministry of Labor. Interested parties should submit their applications to the bank or credit repurchase company in which they hold their loans and participate in the Home Plan.
The Bank of Cyprus estimates that 4,000 of its customers with 10,000 euros of non-performing loans worth € 840 million may participate in the Project. The bank has already contacted its 3,500 customers, the majority of whom have expressed interest in joining the Plan.
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Completing the applications for more than 763 borrowers with loans of € 211 million is at an advanced stage.
As for KEDIPES, the accounts that meet the criteria of the Home Plan amount to approximately 7,300 and have € 1.3 billion loan balances). According to KEDIPES, meetings have been arranged so far with some 300 customers who have already collected the required information, and a significant number of clients are presenting daily to Altamira offices to receive requests.
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Hellenic has sent around 1,050 letters for loans worth around € 250 million.
The project involves Bank of Cyprus, Hellenic Bank, Cyprus Asset Management Company (KEDIPES), Alpha Bank, Astrobank, Eurobank, National Bank of Greece, the Housing Finance Agency and Gordian Holdings.