The basic criterion for inclusion in the Hestia plan for the treatment of non-performing loans and protection of the main residence is that the loans were non-performing both on 30/7/2017 (date of publication of the promoted plan) and on 30/6/2019 (date of announcement of the plan).
The Ministry of Finance in collaboration with the Ministry of Labour, Welfare and Social Security reviewed the fully completed applications which were serviced as at 30/9/2017, but non-performing as at 30/6/2019.
It was found that for a number of them a restructuring was preceded by a restructuring with terms that initially required the payment of a low instalment, which did not cover interest and a principal instalment, and which was increased after 30 September 2017. Consequently, these loans were initially classified as non-performing and were not included in the plan.
Because the restructuring was rudimentary and provided for the payment of a low instalment on 30 September 2017, the possibility of effective servicing of the loans was not apparent on that date. This is demonstrated by the fact that, when the loan instalments were subsequently increased, the loan became non-performing, meeting the criterion of a non-performing credit facility as at 30 June 2019.
Therefore, the Council of Ministers, in a Decision dated 2 February 2022, approved the inclusion in the Focus Plan of fully completed applications for which it has been established, after being informed by the creditors, that they are characterised by the above restructuring history.
(B]PIO[/B]
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