Factsheet for measure
GR-2020-49/1497
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Updated
– measures in Greece
'Bridge Programme' for the support of mortgage loan borrowers
Πρόγραμμα 'Γέφυρα' για τη Στήριξη Δανειοληπτών
Background information
The "BRIDGE" programme of the Ministry of Finance concerns the mortgage borrowers affected by the COVID-19 pandemic. It provides for state subsidy of mortgage installments for a period of nine months. The programme will cover not only non-performing loans, but also borrowers that are not in arrears but have been impacted by the coronavirus crisis.
Content of measure
A platform created by the Ministry of Finance (www.keyd.gov.gr) in order to receive applications for participation in the "BRIDGE" program concerning mortgage borrowers affected by the pandemic. The payment of the loan installment subsidy for nine months to the beneficiaries is expected to start on Monday 30 November 2020 and is addressed to three different categories of borrowers.
The first category concerns the "greens", that is, Informed borrowers who will receive a state subsidy of their mortgages at a rate of 70%-90% for nine months. The other two categories concern the "reds", that is borrowers who have stopped repaying their loan to the bank for more than three months and borrowers whose mortgages have been terminated by the banks as they have not were served for a long time. These two categories of borrowers are entitled to lower installment subsidy rates loans, from 30%-70% and only if, by the end of the year, they proceed to settle their loan with the bank and consent to the lifting of their banking and tax personal data. The estimated budget cost is €108 million for 2020, and €280 million for 2021.
Updates
The following updates to this measure have been made after it came into effect.
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29 September 2021
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A provision, has been announced and expected to be submitted to the Greek parliament for the extension of 'Bridge I' programme, with a reduced subsidy. As such, the subsidy of debts from mortgage loans is reduced by about half for the first residence of those who have joined the program of the Ministry of Finance. These are more than 74,000 borrowers who have taken out a mortgage loan on their first home, the installments of which are subsidized for nine months by the state. The measure started at the end of last August with a deadline for accession at the end of last December and ends for the majority of borrowers at the end of September. With the extension, the measure will last another three months from October to December 2021.
According to recent data from the Ministry of Finance, the payments of the 'Bridge I' program have reached a total of €20.4 million and correspond to the subsidy of 115,447 loans and 73,704 beneficiaries. Taking into account the previous eight payment phases, of the months November - December 2020 and January - June 2021, the total amount of state subsidy paid to date amounts to €185.5 million. By the end of September, when it is estimated that the subsidy of 90% of the installments of the programme will be completed, the government will have paid approximately €230 million from a total budget of €300 million. Through the remaining €70 million, the subsidy will continue until the end of the year.
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Use of measure
The Ministry's of Finance platform received 160,000 applications for mortgage subsidy. Press releases refer that the Ministry has concluded the eligibility criteria control for 100,000 applicants. However, it is not yet known the amount of beneficiaries.
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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Does not apply to businesses
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Applies to all citizens
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Actors and funding
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Actors
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Funding
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National government
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European Funds
National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Unknown
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Unknown
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Unknown
Involvement
No available answer.
Views and reactions
No available answer.
Sources
