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MTR - Cyprus

The Mortgage-to-Rent (MTR) scheme aimed at assisting vulnerable borrowers is set to be enforced from December 4, as announced by George Panteli, the finance ministry's permanent secretary during a press conference on Friday.

Panteli clarified that the scheme's commencement in December is due to the pending parliamentary approval of the bill. The bill is scheduled for discussion next Monday, with plans to proceed to the plenum for voting by next Thursday.

Under the MTR initiative, devised to aid homeowners facing the risk of property loss due to mortgage payment defaults, individuals willingly relinquish ownership of their homes to their lender for a five-year period. A separate entity purchases the property from the lender, assuming the role of landlord. During this period, the borrower ceases to own the property but remains its tenant.

The MTR program specifies that eligible applicants meeting specific criteria, provided they possess a title deed, will transfer ownership to the asset management entity Kedipes. Simultaneously, Kedipes will enter into a 14-year rental agreement with the concerned individual.

Panteli highlighted that the projected fiscal impact of the plan stands at €200 million for the next two years, equating to 0.9 per cent of the GDP.

During his address, Finance Minister Makis Keravnos stated that the MTR plan complements the array of measures proposed by the government for handling non-performing loans. He urged vulnerable groups to embrace this opportunity, referring to it as a potential resolution to their predicaments.



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