The long-awaited commencement of electronic auctions of foreclosed property in Greece is now set for Nov. 29, a development expected to accelerate efforts by the country's thrice-recapitalized to reduce and better manage a "mountain" of bad debt smothering the credit system.
By N. Malliara
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The long-awaited commencement of electronic auctions of foreclosed property in Greece is now set for Nov. 29, a development expected to accelerate efforts by the country's thrice-recapitalized to reduce and better manage a "mountain" of bad debt smothering the credit system.
According to reports, borrowers linked to unsecured loans that haven't been serviced for years have already been sent registered letters warning that their loan is set for resale on the secondary market. The latter is also a long-awaited development in Greece's battered banking system, following legal changes to allow the sale of NPLs to distress funds.
Greek lender Eurobank recently took the lead in the sector, selling off a block of NPLs, identified as consumer loans, to Intrum Justitia earlier this month.
Another 150,000 letters were sent to individuals with loan arrears in June 2017.