The scheme is financed by
As part of the €10 billion financial assistance package
"This day has a symbolic but also a substantive meaning as the transitional stage is over and as of today we enter the operational stage," CCB President
Both Hadjiyiannis made clear that these loans will be granted to viable businesses which have prospects of repaying their loans.
"We are not endorsing loose policies, we feel that by doing our job we assist a borrower to make better programming, to be able to respond to his obligations and to make good use of the money he acquires," he said.
On his part, CCB CEO
"We implement more strict criteria to protect the client from receiving a loan he cannot repay," he said.
The scheme provides for loans from €30,000 to €500,000 with a 12-year maturity, including a two-year maturity, provided that the borrower makes a 20% own contribution. The interest will be fixed 5.25% while when a loan lies in the "Jobs for Youth" scheme the interest rate declines to 4.75%.
SMES should be employing up to 250 persons and medium sized companies employing 250 to 3,000 persons qualify to apply.
Furthermore, both Hadjiyiannis and Clerides said a large portion of the Non-Performing Loans observed in the Coops will be recovered. According to CBC data NPLs in the
Clerides said the Coops so far did not notify borrowers of their loans in arrears. "Therefore we believe there are many borrowers wishing to service their loans but we have never told them to do so," he said.
On his part, Hadjiyiannis said the Cooperative Sector the NPLs can be attributed to some "structural problems" of the
There are some which strategically are not paying but viable restructuring can be made for the remaining cases, he concluded.
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