Amendment on out-of-court settlement process between creditors, borrowers ratified by Parliament

Main opposition SYRIZA party has declared that its deputies will abstain from votes in Parliamen

Amendment on out-of-court settlement process between creditors, borrowers ratified by Parliament

A Parliament majority on Wednesday evening ratified a government-tabled draft bill that includes an amendment that improves – according to the finance ministry – an out-of-court settlement process between debtors and creditors.

The amendment was approved by ruling New Democracy (ND) deputies, who form a majority of the 300-MP legislature, along with deputies of the small right-wing Elliniki Lysi (Hellenic Solution) party. PASOK-KINAL deputies voted “present”, while those of the Communist Party (KKE) and Yanis Varoufakis’ radical left MeRa25 voted against.

Main opposition SYRIZA party has declared that its deputies will abstain from votes in Parliament.

One highlight of the bill, which was prominently cited by the government, is an obligation on the part of creditor banks and loan servicers to explain, in writing, the reasons for rejecting an out-of-court settlement automatically produced by a relevant platform. Additionally the number of eligible borrowers that may seek redress through the process is increased. Finally, the obligation to pre-pay whatever arrears owed to the state in order to enter the process is abolished.

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