In relation to the relevant public discussion, I wish to clarify the following:
Credit Acquisition Companies (CACs) that purchase non-performing loans (NPLs) from a bank participating in the ESTI Scheme are obliged to take all appropriate actions to implement the approval of the Scheme.
The provisions of the Credit Facilities Purchase and Related Matters Act are clear and BINDING to the parties and sufficient for the ECPs to assume all obligations and perform all actions attributable to them as the purchaser/new creditor of a credit facility approved in the ESTI Scheme.
This is also the position of the Financial Commissioner which was expressed following a complaint and which I fully endorse.
I also consider that NO divestment process will be initiated by either a Banking Institution, an ECP which is covered, either by the Estia Plan or by the Installment versus Rent Plan. A relevant understanding has been made in the past between the Ministry of Finance and the Association of Banks.
Therefore, I urge all Credit Acquisition Companies to proceed immediately with the processing of applications to the Hestia Scheme, always in consultation with the Ministry of Labour and Social Security as the Responsible Entity for the Scheme, to avoid further inconvenience to the citizen.
(MB/SX)
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