State aid to help laid-off workers with mortgage payments starts in January

A state aid programme for people who are unemployed due to the economic crisis who cannot make their mortgage payments will become effective on January 1, 2010, according to the Finance Ministry, which will submit a report on the safeguards in this programme to the next government session, the TASR newswire reported.

A state aid programme for people who are unemployed due to the economic crisis who cannot make their mortgage payments will become effective on January 1, 2010, according to the Finance Ministry, which will submit a report on the safeguards in this programme to the next government session, the TASR newswire reported.

A working group has prepared a contract to be signed by the Slovak Consolidation Bank and commercial banks. The contract creates a framework for this programme, while several changes in legislation need to be approved, TASR was told by the ministry's spokesman, Miroslav Šmál. These changes pertain to legislation about banks, budgetary rules and consumer loans.

The state aid is designed for those who after January 1 2009 lost or will lose their jobs due to the crisis and don't have the financial resources to pay their loans, initiated prior to 2009, that were provided for housing units in which debtors have their permanent residence.

The total sum of such a loan must not exceed €83,000. The Slovak Bank Association estimates that if unemployment increases by 44,000 people there could be approximately 4,400 defaulted loans within the time period the measure is in effect. It was estimated that €12.4 million will therefore be needed. As the aid is in the form of loans, it won't have an impact on the budget or the public finance deficit.

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Get daily Slovak news directly to your inbox

Top stories

Health Ministry gearing up for COVID vaccines

Mass campaign planned to get people to take jab.

Illustrative stock photo

He was almost murdered. Instead, he is to become general prosecutor

It was not clear whether the election would take place on December 3 until the very last moment.

Maroš Žilinka

Žilinka elected the next general prosecutor

He received 132 votes out of the 147 present MPs.

Maroš Žilinka

Grandson turns his blue-haired grandma into an Instagram sensation

President Zuzana Čaputová is one of her nearly 13,000 followers.

Photographer Marek Pupák takes pictures of his grandmother. He also created the blue.grandma profile on Instagram, where he posts the photos of her.