The relevant economy minister on Tuesday referred directly to a new legal framework, primarily based on the out-of-court settlement process, in order to deal with a massive build-up of non-performing loans (NPLs) in the country.
The relevant economy minister on Tuesday referred directly to a new legal framework, primarily based on the out-of-court settlement process, in order to deal with a massive build-up of non-performing loans (NPLs) in the country.
Minister Giorgos Stathakis referred to the framework primarily in terms of dealing with NPLs linked with self-employed professionals and businesses in the country, rather than mortgages or borrowing by households.
He spoke at a one-day seminar hosted by ruling SYRIZA party’s economy section.
In referring to the foreseen process, Stathakis said it will be “comprehensive” in scope, meaning not only the settlement of NPLs held by banks, but also debts owed to the tax bureau, social security funds and other creditors.
A relevant draft bill will be tabled in Parliament at the end of October, he said.
NPLs in the country total more than 110 billion euros, a massive "mountain of debt" for which institutional creditors have repeatedly demanded measures, such as allowing distress funds to purchase NPL portfolios.