Contribution to the upgrades of the Greek economy
By 25 billion euros were limited the ‘Red’ loans In banks and services in the third quarter last year compared to 2019, from € 92 billion to € 67 billion.
These figures have been recorded at the Ministry of National Economy and Finance, whose executives say this significant reduction in private debt is one of the reasons for the upgrades of the Greek economy from the ratings.
According to ministry agents, a number of legislative initiatives (Law 5072/2023 and Law 5113/2024) contributed to the restriction of “red” loans, which significantly improved the operation of the out -of -court mechanism. To date, the total number of successful arrangements is 30,515 arrangements, with the total value of the regulated debts amounting to € 10.01 billion, it was highlighted in the RES EIA. And it is noteworthy that the arrangements in the out -of -court mechanism increased by 81% between 2023 and 2024. While new initiatives announced by the Minister of National Economy and Finance Kostis Hatzidakis (eg doubles the limit of income and property criteria in compulsory out -of -court mechanism. ) greatly expand the framework of out -of -court application and the level of protection for tens of thousands debtors.
The competent agents of the RPH are indicative of what is true to date:
-Automatic and compulsory acceptance by banks and publicly the debt restructuring proposal for vulnerable debtors.
-Expanding people with a disability rate of over 67% in the category of vulnerable debtors with increased limits on income and property criteria.
-Extra higher “haircut” 28% in debt.
-In particular, with the presumed consent of the creditors in the out -of -court request, the protection of vulnerable borrowers was enhanced, with 2,673 vulnerable households benefiting from debt arrangements.
-Status interest rate for 3% for all arrangements (public, banks, services).
-Possibility of settlement of debts to the State of legal entities that have been put into a solution or liquidation, by co -owned debts.
-Thispay of up to 10% for debtors who have been auctioned program, with the exception of vulnerable debtors for whom a vulnerable debtor has been issued (where no advance may be requested).
-Possibility of re -establishment of debts in order to include debts to the State certified in the interim if the restructuring proposal is delayed for any reason.
It is also noted that through the Hercules program the banks have achieved a remarkable reduction in non -performing loans in their portfolios. In the third quarter of 2024 the rate reached 4.6% (in 2019 the rate was 40.6%).
Is it also recalled that the new measures announced by the Minister are the following?
1) Increase in income and assets in order to designate a debtor as an eligible in the context of the compulsory acceptance of the out -of -court mechanism by creditors. With the arrangement introduced, the criteria for classifying a borrower as eligible in order to comply with the consent of all creditors to integrate the debtor into the out -of -court mechanism. The doubling of these limits is a prerequisite for the debtor to have a maximum of 300,000 euros (ie in banks or services).
2) The obligation of the creditor to have deposited at least 3 months before the auctioning a written proposal to the debtor.
3) Debtor exemption for which he does not open a bankruptcy procedure but is registered in the solvency register.
4) Extension of deadlines so that the vulnerable debtor can enter the intermediate program.
5) Expanding the ability to regulate loans with a government guarantee through the resolution process.
6) A permanent mechanism for damages of “ASPIS PREVENTION” is created- Issues of compensation are resolved in beneficiaries of life insurance claims.
