The European Commission’s Directorate-General for Competition has approved the Cypriot government’s plan to subsidize the interest rate on housing loans.
The program will provide support to families with an annual income of less than €50,000 who took out a mortgage between January 1, 2022 and December 31, 2023 for an amount not exceeding €400,000.
The subsidy will cover 50% of the increase in the interest rate that has occurred since the signing of the loan agreement for a period of two years. The budget of the plan is €20 million.
The aim of the program is to alleviate the financial burden on households, which is one of the government’s goals. The Ministry of Finance is already working on the next stage of the plan’s implementation: negotiations with credit institutions, signing of agreements, and establishment of a process for evaluating beneficiaries.
The program is expected to benefit a significant number of households. According to the Central Bank of Cyprus, there were approximately 70,000 mortgages outstanding in Cyprus at the end of 2023, with an average value of €250,000.
The program is also expected to have a positive impact on the Cypriot economy. By reducing the financial burden on households, the program will free up disposable income that can be used to support consumption and economic growth.
The approval of the program by the European Commission is a positive development for Cyprus. It is a sign that the government is committed to supporting its citizens and helping them cope with the rising cost of living.
The program is expected to be implemented in the coming months. More information about the program, including the eligibility criteria and the application process, will be available soon.
