About 14,000 out of 25,000 debtors who visited the platform until yesterday vulnerable households who applied for subsidizing loan payments them who have a mortgage on their first residence. OUR application site in order for a borrower to be classified as vulnerable, it works in Special Private Debt Secretariat and as of February 1, when the program opened, the number of potential applicants is approaching the banks’ initial estimates of 25,000-30,000 recipients.

The Vulnerable Household Support Plan provides a 50% subsidy for the increase in the tranche resulting from the increase in interest rates with a start date for calculating the increase on June 30, 2022. Since then, the ECB has carried out five interest rate hikes. and the euribor, at which floating rate loans are valued, is currently 2.6%, with the prospect of further growth ahead of the next ECB meeting in early March, when another 0%, 50% increase is expected.

At the moment there were 14,000 – according to banks, the number of beneficiaries will approach 25,000-30,000.

The program provides for subsidizing 50% of the increased contribution paid by borrowers. Thus, if the mortgage payment was 400 euros last June and increased to 500 euros, the subsidy would be 50 euros. If, based on the euribor rate, the increase reaches 560 euros in the coming months, the total amount of the subsidy will be 80 euros. The subsidy will cover dose increases to date as well as those occurring over the next 12 months. Permanent borrowers are eligible to participate in the program, i.е. those who did not postpone the payment of the loan for a period of more than 3 months. According to the calculations of banks, the amount of the subsidy for beneficiaries will begin to be credited to their accounts in April. However, the fee that subsidized borrowers will pay to the bank will be received on the basis of their loan agreement and will not be reduced. So it will be a subsidy in the form of a return of money to the borrower’s account. Accordingly, the amount of the subsidy will be collected by the four systemically important banks into a common fund in the form of a piggy bank, through which the amounts will be credited to EGDIX beneficiaries.

A key criterion, in addition to the solvency of the debtors, is their compliance with the income and property criteria provided by law, so that they are classified as vulnerable. The income criterion starts at 7,000 euros for a single parent family and rises to 21,000 euros depending on the number of children, while the property criterion applies to all immovable property, the amount of which starts from 120,000 euros and rises to 180,000 euros , also depending on the composition of the family and the amount of the contribution, which cannot exceed 7,000 euros.