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Starting today - ESTIA -

Updated: Sep 19, 2019

Starting today - ESTIA -


After months of waiting and intense debate about the impact it will have on the protection of the first home, the application period for the Estonia plan begins today, September 2. Interested parties will have until November 15 to submit their application to their bank. The "P" presents a comprehensive guide to the project, with questions and helpful answers. It is a simple tool that banks, credit agencies and ministries will publish within the coming week as the project begins to be implemented.

In any case, it is advisable for borrowers with non-performing loans and first home mortgages to apply, regardless of whether they are eligible for membership, in order to gather data on the characteristics of borrowers who are at risk of losing their home. The figures, as Finance Minister Haris Georgiadis said, will be used to prepare new plans for those left out. These new designs will not have the features of a Home, which is offered for a single time. In accordance with the terms of the Estonia plan, the applicant shall complete and submit to the bank the application and all necessary supporting documents within the period 2 September 2019-2019. Banks and creditors participate in the program and may apply for (co) a homeowner, a (co) borrower of non-performing credit facilities as defined in the plan, and a major legal entity shareholder owing the non-performing credit facilities.


Why is there a need to create this plan?


The plan is created because the government wants to implement a government-sponsored plan for a specific category of borrowers.



Will the plan be offered only once? That is, if there are delays in one year will new borrowers be able to join again?


The plan will be offered only once for specific credit facilities (see point 10), and upon expiry of the deadline (see point 5), its bid will be terminated and will not be repeated.



How will the project participant benefit?


A state grant will be paid by the participant corresponding to one third (1/3) of the installment of the restructured home loan.



What will the state sponsorship cover?


The government grant will cover 1/3 of the payment of capital as well as accrued interest equal to 1/3 of the restructured home loan annually, provided that the borrower meets the eligibility criteria and will continue to repay his own contribution. according to the restructuring terms to be agreed between the borrower and the participant (bank or credit repurchase company).



What is the start date and duration of the project?


The plan is in effect from September 2, 2019 until the repayment of the restructured home loan or repayment of the restructured home loan restructuring obligations.

The date of application, together with all the necessary supporting documents, must be within the period 2 September 2019 - 15 November 2019.



What is the time period for the applicant to submit to the participant the application and all the necessary supporting documents?


The applicant must submit to the participating entity the application and all necessary supporting documents, from 2 September 2019 to 15 November 2019. The collection of the necessary supporting documents may begin immediately.



How can the borrower express their interest?


The borrower concerned may express interest in the participant to whom the principal residence is assigned as the first mortgage within the time limit (see Question 6).



How will the customer know that they are in the plan?


All borrowers who are interested in participating in the project should contact the participant to whom the main residence is assigned as a first mortgage.



How can the person concerned be informed of the proper completion of the application and the details to be submitted?


There is a supplementary guide published on the website of the Ministry of Labor and Social Security. The person concerned may also turn to the participant.



What criteria should the credit facilities that are part of the project meet?


The plan concerns borrower's credit facilities, regardless of currency, if at least 20% of all borrower's credit facilities in the participant were past due for at least the preceding 90 days.



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