In the next period, as the finance minister said, the relevant legislative initiative is expected to be voted on
Immediate download legislative initiative regarding the improvement of the extrajudicial mechanism, Finance Minister Christos Staikouras announced from the floor of the Parliament, answering a topical question of the head of the PASOK-Change Movement parliamentary group, Michalis Katrinis, about the “ever-increasing private debt”.
As said by Mr. Staikouras“we are improving the existing tool of the extrajudicial mechanism through direct legislative initiative in the next few weeks to:
- To oblige the justification of non-consent to the regulation proposal, produced by the algorithm, of both the financial institutions and the debtor, and to publicly post this on the platform,
- To expand the scope of the extrajudicial mechanism, so that debtors with a single debt can be included,
- To include new categories of debts that can be regulated, such as debts in favor of third parties collected by the tax administration and
- To abolish the penalty for prepayment of debts to the public, but also to reduce the interest rate for their settlement”.
Moreover, referring to the last press release published by the Loan Management Companies, on February 2, 2023, he said that “adjustments totaling 27 billion euros have been made, an amount corresponding to over 590,000 borrowers”, while “adjusted loans totaling more than 8 billion euros in the banking system, bringing more than 115,000 borrowers back to banking normality”.
As far as support plan – from the financial system – aware vulnerable borrowers, to subsidize the tranche of mortgages and/or small business loans, said that “the strong interest that has been shown by vulnerable households during the first days of operation of the platform, confirms and demonstrates the necessity of immediate undertaking this initiative”. As he said, “as of February 6, 22,909 applications had entered the platform. Out of these applications, 13,509 are active and not finalized, 8,339 are finalized, waiting for information to be collected, and 1,061 have already received a certificate of vulnerable household”.
On his part, Mr. Katrina he said that both the extrajudicial mechanism of ND and that of SYRIZA failed because they were “tailored to suit the banks and not the borrowers”.
As he noted, on the platform of the ND government, interest has been expressed by debtors who owe a total of 24 billion euros. Whereas, today as we speak, 20 months after its implementation, of the 24 billion euros they want to regulate, they have regulated 4.5%. Is this a success? No”.
He pointed out in fact, that “there is no banking intermediary to be able to judge whether a proposed arrangement is sustainable, and there is no institutionalized possibility of a borrower counter-proposal so that his own proposal can be accepted by the platform. That’s why the small number of settings so far.”
RES-EMP
Read the News today and get the latest news.
Follow Skai.gr on Google News and be the first to know all the news.
I am Janice Wiggins, and I am an author at News Bulletin 247, and I mostly cover economy news. I have a lot of experience in this field, and I know how to get the information that people need. I am a very reliable source, and I always make sure that my readers can trust me.
