Banks: From April 1st, first interest rate support given to 1,504 vulnerable people – what beneficiaries need to know

in 1,504 at-risk borrowers were informed The first bank support will be provided in April as part of the program it finances to cover interest rate increases. They are in the “queue” for vulnerability certification, which begins the process of receiving support 27,998 incomplete applications.

The aim of the Private Debt Management Private Trust, as well as of the Banks, is to inform and guide interested beneficiaries in order to finalize their applications. It is worth mentioning that About 13,000 of these applications do not have registered contact email, banks and EGDICH are looking for recipients by phone.to take advantage of the programme.

As Finance Minister Christos Staikouras, from Lamia, stated yesterday during his speech at the Star Forum, greater efforts are also needed from the community to take advantage of the tools put in place to help him.

In this case, The four systemic banks have pledged to cover 50% of the increase Which will appear monthly loan installments secured by the first home to vulnerable consistent borrowers, and support loans that have irregular bank customers. The latter makes no commitment to support and their customers (we are always talking about the vulnerable who are in the know) will be supported by the big banks. The support cost was estimated at 15-20 million euros. The circle of beneficiaries of borrowers is estimated at 30,000 cases with loans of about 2 billion euros.

As reported by insider.gr, Ms. Theoni Ambassis, President of EGDICHOn the website of the Special Secretariat for Private Debt Management, keyd.gov.gr and in the Debt Settlement – First Home section, citizens can be guided step by step to complete the application for a weak debtor certificate, which they must apply to banks to receive interest rate support. It should be noted that instructions for completing the application are also given to the beneficiary’s spouse and dependent member, as well as to the advisor.

EGDIX also answers what citizens need to know about the loan installment (interest) subsidy program from banks.

especially:

1) What is the Mortgage Subsidy Program or Small Business Loan?

The mortgage or small business loan installment support program for informed vulnerable borrowers, with real security in the first dwelling, is implemented by the banks that operate this program. The full cost of supporting vulnerable borrowers, under the premium CSR measures for financial institutions, will be covered by equal contributions from the four statutory banks. The Private Debt Management Secretariat assists in the implementation of the program in terms of the first step of this, which is the issuance of the relevant certificate to the vulnerable borrower.

2) What is supported under the system?

The program concerns vulnerable borrowers who have obtained housing loans or small business loans, with real guarantee at their first place of residence, which were granted by banks until 06/30/2022. As part of the program, 50% of the interest rate increase (with a reference date for calculating the increase of 30.6.2022) is subsidized for a period of 12 months.

3) How can I apply to the programme?

The first step in applying for the subsidy program is issuing a weak borrower certificate. The certificate is issued by submitting an application on the link https://www.gov.gr/ipiresies/periousia-kai-phorologia/diakheiriseopheil… It is emphasized that when submitting the above application, the applicant must choose “agree to exchange information with institutional creditors”, so that the weak debtor’s certificate is sent electronically to its creditor, so that the support program process, which is implemented through the platform of systemic banks, continues. In the next step, he will be notified electronically by the bank that will manage his application, in order to complete the support initiation process.

4) When did the program start?

Applications for the Support Program started from February 1, 2023 by first applying for a weak debtor certificate.

5) What are the income and assets criteria to classify a debtor as vulnerable?

In accordance with the currently valid YA 71670/2021 (OJ B 4500 / 29.09.2021) to determine the terms and conditions for housing allowance, families must meet all of the following income, assets, and other criteria:

1. Income criteria

The total household income cannot exceed €7,000 for a single-person family, plus €3,500 for each family member. In a single-parent family, an additional cost of 3,500 euros is set for the first minor member of the family. In a home with an unprotected child/children, an additional cost of 3,500 EUR is established for each unprotected child. The total income cannot exceed €21,000 per year, regardless of family composition.

The following cases are listed, indicatively:

• A family for one person 7,000 euros, a family for two people – 10,500 euros
• A family of three or a single-parent family with one minor member – 14,000 euros
• A family of four or a single-parent family with two minors – 17,500 euros
• A family of five or more members or a single-parent family with three or more minor members – €21,000

2. Ownership criteria

a. Immovable Property: The total taxable value of a family’s immovable property, as defined by the EN.FIA Supplementary Calculation. With the provisions of Law 4223/2013 (A ‘287) and the results from the last tax determination law, the total amount of 120 thousand euros for a family of one person cannot exceed, with an increase of 15 000 euros for each additional member and up to the amount of 180 thousand euros.

B. Assumption of Assets: The total amount of interest on deposits of family members at all credit institutions in the country or abroad, as declared in the last approved tax return (E1), cannot annually exceed the amount generated by the following arithmetic equation: = deposit limit per Kind of Family * Average Annual Filing Rate / 100. The year for calculating the average filing rate is defined as the year to which the last approved tax return corresponds.

The following are defined as the filing limits for each type of bed:

• Single person house – 7,000 euros
• Double family – 10,500 euros
• A family of three – 14,000 euros
• A family of four – 17,500 euros
• Family of 5 or more – 21,000 euros

Applications will not be accepted from families whose members, based on the latest deductible tax return: fall within the provisions of luxury living tax, declaration of expenses for yacht crew fees, declaration of expenses over one thousand five hundred (1,500) euros for private school tuition fees, declared For expenses for domestic helpers, motorists, teachers and other employees, as specified by the corresponding codes on Form E1.

6) How is the vulnerability criteria verified and the certificate issued?

By submitting the application on the EGDIX website, the vulnerable person gives his consent to the processing of his data and the removal of his bank and tax secrecy, in order to collect data proving the fulfillment of the criteria of the vulnerable person from the available sources. If it is confirmed that the mentioned criteria are met, the certificate is issued.

7) What is the expected first payment?

It is estimated that the corresponding amounts will start crediting the beneficiaries’ accounts in April.