CYPRUS: New loan schemes from state lender

The state-owned Housing Finance Corporation (HFC) is set to implement a new student loan scheme and a scheme for the purchase of building plots by the end of August, taking advantage of recent amendments to its law, that expand its activities beyond the market of primary residence.

 
The HFC also said that in September it will begin legal procedures to recover unpaid loans.
HFC Director General Andreas Georgiou was quoted by the Cyprus News Agency as saying that before the end of August the organisation will implement a new scheme for the purchase of building plot which up until now was not covered by its housing loan schemes.
He also said that in view of the new academic year, the organisation will also offer “a quite attractive” student loan scheme, with an interest rate ranging between 2.90% – 3.30%.
He said that two more schemes will follow, one for healthcare and purchase of housing equipment.
The HFC has stabilised its non – performing loans to EUR 300 million, has strengthened its team that manages the NPLs and has been implementing a project focusing on the hard core of the NPLs, a loan portfolio of around EUR 80 million, which concern borrowers that cannot repay their loans or do not show any interest in doing so.
All the non-cooperative borrowers will be taken before justice, Georgiou said. To that end, the organisation has made agreements with seven law firms, he noted.
The first cases will be in the hands of the lawyers as of September, said the director of the organisation.