Despite the fact that the rate of loan adjustments has increased significantly in the last period of time, the final number of adjusted loans is far from the desired, according to the Ministry of Finance, final amount.
According to information, Finance Minister Christos Staikouras is exerting pressure on banks and servicers in order to increase the tension for loan arrangements in the context of both the out-of-court settlement and the bilateral agreements.
Despite the fact that the rate of loan adjustments has increased significantly in the last period of time, the final number of adjusted loans is far from the desired, according to the Ministry of Finance, final amount.
In a meeting held yesterday, this dissatisfaction was conveyed on the part of the Ministry of Finance and banks and servicers were asked to increase the pace so that on the one hand the goals are achieved and on the other the out-of-court settlement law satisfies its mission .
In fact, according to the relevant information, the Ministry of Finance and the Private Debt Management Secretariat presented detailed data, according to which the government’s position is confirmed.
It should be noted that in addition to Finance Minister Christos Staikouras, the Special Secretary for Private Debt Management Marialena Athanasopoulou, representatives of banks with responsibility for non-performing loans, servicers, the Secretary General of the Hellenic Banks Union Chariklia Apalagaki, the governor of AADE Giorgos Pitsilis, while the Bank of Greece was represented by Ilias Plaskovitis.
According to information, banks and servicers do not show particular zeal in regulating loans through the out-of-court procedure and this is because they believe that if they enter this process, the “haircut” rates may be higher than what they calculate and for this reason they are low in the hierarchy of options.
On the contrary, in the Ministry of Finance, they believe that out-of-court settlement and bilateral agreements are the only orthodox way, so that non-performing private debt can be settled and unpleasant options such as, for example, auctions are avoided, an option that they allegedly use especially banks and servicers.
According to the data collected by the responsible Secretariat, banks proceed to reject arrangements, either through extrajudicial or bilateral level at a rate of 67%, while the corresponding rate for management companies is 34%.
It should be noted that based on the out-of-court settlement, the installments for debts to the public amount to 240, while for debts to the banks it can even reach 420 installments.
However, the information indicates that the Ministry of Finance appears determined to take all those initiatives that will put the whole process on the rails. In this context, it is expected that next week there will be an official update on the course of the out-of-court settlement, while the possibility of the matter reaching the Parliament should not be ruled out.
RES-EMP
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