Chrysostomos Tsoufis

The process of paying the State contribution to vulnerable debtors until its operation Acquisition and Leasing Agency of their properties – which according to information is expected at the beginning of 2024 – is determined by an MOU signed by the Ministers of Finance and Labor.

In the framework of the Public Contribution Program for vulnerable debtors as it is called, the State for 15 months undertakes to assist with up to 80% of the mortgage loan installment for the main residence of vulnerable debtors, from €70 to €210.

The procedure stipulates that creditors define a special frozen and non-seized account on the relevant electronic platform, with IBAN format, in which the money will be deposited in favor of the debtor. Account declaration unlocks payments.

The aid is not confiscated and not offset.

These accounts are only credited by the State with the contribution and debited only for the repayment of the debt of the beneficiary vulnerable debtor.

Any other movement is prohibited and the entitled creditors are prohibited from using the sums of money deposited in the special and non-seizure accounts for any other reason than the reduction of their debt.

The aid is credited every month, on the last working day.

If for any reason, the money is not paid then it is provided that the credit can be made retroactively.

During the 15-month state aid, it goes without saying that the debtor must also pay his own share and the decision charges the creditors to monitor whether it is consistent and to inform the platform otherwise so that the aid is stopped immediately.

During the entire duration of the aid, all measures of forced collection of creditors such as auctions, confiscations and evictions are suspended.

Beneficiary of the support is a one-person household with annual income up to €7,000.

The amount is increased by €3,500/additional member.

In the single-parent family, a supplement of €7,000 is set for the first minor member of the household.

In households with unprotected children, a surcharge of €7,000 is set for each unprotected child.

The total income cannot exceed €21,000 per yearregardless of household composition.

At the same time, the total taxable value of the household’s real estate cannot exceed €120,000 for a one-person household, increased by €15,000 for each additional member and up to €180,000

There is also a limit for deposits which cannot exceed €7,000 for a one-person household, increased by €3,500 for each additional member of the household.

In the single-parent family, a supplement of €7,000 is set for the first minor member of the household. In households with unprotected children, a surcharge of €7,000 is set for each unprotected child.

The submission of applications until 15/12/2023 or until the operation of the Real Estate Acquisition and Leasing body, whichever occurs first.

After the end of the support program, vulnerable debtors who are unable to service their debt arrangements should turn to the body provided by the extrajudicial mechanism for debt arrangements and the provision of a second chance.