Wednesday’s “warning bell” by the EU Commission apparently proved to be the fillip for the Greek government and the country’s four systemic banks to come to an agreement over a new framework to protect primary residences from creditors.
Wednesday’s “warning bell” by the EU Commission apparently proved to be the fillip for the Greek government and the country’s four systemic banks to come to an agreement over a new framework to protect primary residences from creditors.
The development, which must be conveyed into print and then submitted for ratification in Parliament, comes a day after the current framework expires, and on the back of repeated warnings by European creditors to finalize the deal.
According to reports, whatever subsidization of a monthly mortgage payment by the state, after a “haircut” of the non-serviced loan of eligible borrowers and a new installment plan, will automatically be calculated by a relevant e-platform.
No new court decision will be necessary, thus bypassing the creaky Greek lower court system.
At banks’ insistence, a “grace period” of only nine months will then be extended, meaning that a foreclosure process can then commence if the loan remains non-serviced – and after the restructuring.
Also, applying for protection under the new framework does not automatically mean that the process commences.
Additionally, only the NPL is eligible for protection and not a borrower’s total arrears.