Government green lights interest rate subsidy scheme
The government on Wednesday approved a scheme subsidising interest rates on housing loans, aimed at combating the impact of high interest rates and inflationary pressures. The cabinet’s decision said individuals who obtained a housing loan bet
The government on Wednesday approved a scheme subsidising interest rates on housing loans, aimed at combating the impact of high interest rates and inflationary pressures.
The cabinet’s decision said individuals who obtained a housing loan between January 1, 2022 and December 31, 2023 which was not aimed at restructuring a previous loan and is with a variable interest rate are eligible to apply.
The loan must have been obtained to purchase or construct a primary property, including the land.
Additionally, the loan cannot exceed €400,000 and the annual family income should not be more than €50,000.
Applicants should have settled all their income tax dues.
Details will be available on the state treasury website. Applications can be submitted to citizens service centres starting January 2, 2025 for two months.
The interest rate subsidy will cover 50 per cent of the difference between the total interest for the reference period and the interest rate which was in place when the account was issued. The maximum subsidy will be two percentage points (200 basis points) for two years since the first loan repayment.
Government spokesman Konstantinos Letymbiotis assured the European Commission greenlighted the measure as it does not entail any element of state aid.
The necessary provisions for the plan have been made in the state treasury’s budget for the years 2025, 2026 and 2027 for amounts of €12 million, €11 million and €10 million, respectively.
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