03/12/2018 (Agence Europe) – The European Commission approved on Monday 3 December a Cypriot scheme to support households and micro-companies that have encountered difficulties in repaying mortgage loans. With an annual budget of around 33 million euros, this scheme sets strict eligibility criteria in terms of the value of the primary residence and income of the borrower. Under certain conditions, households and micro-companies will receive a grant equivalent to one third of their monthly loan payment. If the borrower stops servicing its loan, it is foreseen that the bank initiates the foreclosure of the property. It will then have to restructure the loan, benefiting from the same State support. The Commission considered that this support scheme did not constitute State Aid to the persons concerned. With regard to the banking sector, the institution considered that the aid would not create a distortion of competition and gave the go-ahead. (LT)