Background information

On 13 November 2021, European Commission approved a €665 million Greek scheme to support vulnerable households affected by the coronavirus outbreak. The scheme will assist those households in repaying their mortgage loans, which are at risk of losing their primary residence, and targets both non-performing loans and borrowers with performing loans. Eligible are homeowners affected by the COVID-19 outbreak, under certain criteria in terms of income, wealth and the value of their primary residence.

Content of measure

The European Commission, under the Temporary Framework programme, approved a €665 million Greek scheme to support households that have been affected by the coronavirus outbreak. The current scheme will assist households, at risk of losing their primary residence, in repaying their mortgage loans. The scheme targets non-performing loans but in addition covers borrowers with performing loans. Its intention is to  allow those vulnerable debtors who intended to restructure their non-performing loans and denounced loans to go ahead with the restructuring, despite the fact that they are being negatively affected by the impact of the COVID-19 outbreak, to avoid repossession of their primary residence. Also, to reward debtors, affected by the COVID-19 but consistent to their repayment obligations,  and to avoid that vulnerable debtors, whose financial situation deteriorated due to the COVID-19 crisis' impact on Greek economy and still have performing loans, are at risk of losing their primary residence. The State subsidy is for a maximum duration of nine months and has limitations as regards the amount.  Eligible for the scheme are homeowners affected by the coronavirus outbreak, natural persons employed by private companies, self employed persons, and small businesses, fulfilling certain criteria in terms of income, wealth and the value of their primary residence. The scheme's budget amounts to approximately €665, covering an amount of eligible loans equal to €13.8 billion. The support relating to Performing Loans is estimated at approximately €540.7 million; to Non Performing Loans at approximately €65.5 million; and to Denounced Loans at approximately €59.5 million.

Use of measure

No available information.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Does not apply to businesses	The COVID-19 risk group

Actors and funding

Actors	Funding
National government EU (Council, EC, EP)	European Funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

No involvement.

Views and reactions

No available information.

Sources

• 30 December 2021: State aid: Commission approves €665 million Greek scheme to protect primary residences of vulnerable borrowers (ec.europa.eu)