The Council of Ministers approved today the "Rent vs Instalment Scheme", following the approval by the European Commission's Directorate General for Competition on July 6, Government Spokesperson Konstantinos Letymbiotis said on Wednesday, following the conclusion of the Council of Ministers.

Letymbiotis said that under the scheme vulnerable households will be able to reside in the property as tenants and at the same time be relieved of the mortgage loan, with the state fully covering the required rent on behalf of individuals, while the existing owners of the property or their first-degree relatives will be able to buy back the house after five years at a favourable price below the level of market prices.

He added that eligible to join the scheme will be recipients of social benefits with non-performing loans on 31/12/2021 and which remained non-performing on 31/12/2022, with a market value of up to €250,000.

He added that the second category of beneficiaries consists of all ESTIA and OIKIA plans applicants who were assessed as eligible but non-viable, with a market value of up to €350,000, while the third category consists of all ESTIA and OIKIA plans applicants who were approved for inclusion in these plans and whose inclusion was subsequently terminated.

"The Plan is in line with both the government's policy of reducing non-performing loans and the policy of strengthening affordable housing", Letymbiotis underlined, adding that "this innovative plan for Cypriot standards offers a definitive and fair solution for the repayment of housing non-performing loans and the protection of vulnerable households".

Asked whether the President of the Republic will refer the other three bills in case his proposal on foreclosures is not approved by the Parliament, the Government Spokesperson said that the government is first waiting to see how the debate will develop in tomorrow's plenary session of the Parliament.

"What we are saying is that we must understand the gravity of the circumstances and rise to the occasion, all of us, executive and legislature. We call on the responsible political forces of the country to study the package of measures that the government has sent them via the Ministry of Finance," he said.

He added that the government believes that through the package of measures presented by the Ministry of Finance and an additional legislative proposal submitted by DIKO, DEPA and EDEK, there can be a comprehensive approach to non-performing loans and foreclosures, an issue that has been plaguing the economy and society for the past ten years, and this will safeguard vulnerable borrowers and at the same time the economic credibility and stability of the country.