Greek Finance Minister Presents Measures to Tackle Private Debt

The Greek Finance Minister, Kostis Hatzidakis presented six initiatives to curtail private debt in a press conference on Wednesday.

The measures include a 2-fold increase in the income and asset limit for a debtor to be eligible for the mandatory out-of-court arrangement mechanism.

Before initiating a foreclosure, the creditor will be obligated to inform the borrower in writing of a debt settlement proposal, provided the debtor has registered on the creditor’s electronic notification platform.

There will be debt relief for a borrower for whom bankruptcy proceedings have not moved forward but have been instead recorded in the Insolvency register.

The deadlines allowing those in the category of “vulnerable debtors” to enter the interim support program have been extended. The strict 60-day deadline, within which a vulnerable debtor was required to apply for inclusion in the State Contribution Program for Vulnerable Debtors, has been abolished.

The ability to restructure loans guaranteed by the Greek State through the rehabilitation process is being expanded. Under the new criteria, it is extended to cases where the debtor opts to settle their debts through the rehabilitation process.

A permanent compensation mechanism is being established for those affected by the collapse of the insurance company “Aspis Pronoia,” thus resolving outstanding life insurance compensation claims.

Commenting on the data about non-performing debt in banks and loan servicers, the Greek Finance Minister stated that in 2019, non-performing loans amounted to 92 billion euros, while in the third quarter of 2024, based on available data, they had decreased to 67 billion euros.

Source: tovima.com