Protecting the primary residence of vulnerable groups

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As a consequence of the economic crisis, many households in Cyprus are unable to keep up with their mortgage payments. At the same time, the banks are eager to improve their very low ratings by repossessing property, thereby reducing the large and increasing number of their non-performing loans. A scheme has recently been introduced to support vulnerable households that are facing economic hardship and are unable to fulfil their mortgage obligations. This scheme protects the primary residence of these households by subsidising their mortgage interest payments.

Authors: Panos Pashardes, Christos Koutsampelas and Mamas Theodorou