A top Greek banker on Monday shed light on the issue of protection of primary residences in Greece – shielding over-indebted households from creditors – after the current legal framework expires on Jan. 1, 2019. In response to a question by “N”, Eurobank Deputy CEO Theodoros Kalantonis said the so-called “Katselis Law” will continue to apply after the new year, although tighter criteria will have to be instituted as far as income criteria are concerned, as well as the objective value of the property under protection.
By V. Kostoulas
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A top Greek banker on Monday shed light on the issue of protection of primary residences in Greece – shielding over-indebted households from creditors – after the current legal framework expires on Jan. 1, 2019.
In response to a question by “N”, Eurobank Deputy CEO Theodoros Kalantonis said the so-called “Katselis Law” will continue to apply after the new year, although tighter criteria will have to be instituted as far as income criteria are concerned, as well as the objective value of the property under protection.
Speaking during an Economist conference in Berlin, he said Greece’s systemic banks have proposed a 100,000-euro ceiling on the value of primary residences eligible for such protection. The Eurobank executive said discussions are in the final stages before a decision is announced.
Kalantonis also said a “Cyprus model” has been discussed, namely, having the Greek state subsidized up to one-third of the monthly loan instalment, under the condition that the borrower and mortgage holder will cover the remaining two-thirds of the obligation.