Servicers announced the freeze on floating mortgage interest rates on Holy Wednesday. The new programs will take effect no later than May 2 and will be valid for 12 months.

As they state in their announcement:

The sector of Loan Management Companies practically supports borrowers in their efforts to return to normal economic activity, contributing to the consolidation and development of the Greek economy. A constant priority of the member companies of the Union (EEDADP) is to find effective and sustainable solutions for the repayment of outstanding debts of borrowers.

The significant increase in interest rates by the European Central Bank has burdened the cost of servicing borrowing, affecting among other things the family budgets of households that have mortgages linked to the basic interest rates of the euro. The Management Companies recognize this difficult situation and have decided to help address the adverse conditions that have arisen due to the increase in prime lending rates.

In the context of the above decision, the member companies of the Union decided to formulate in the immediate future appropriate programs with the aim of freezing the floating base interest rates, for informed mortgage loans of private borrowers (natural persons). The above programs will come into force no later than 02.05.2023 and will be valid for twelve (12) months. The specific initiatives will be specialized by loan portfolio and are aimed at providing assistance to consistent borrowers who may face difficulties in repaying their loans.
of their respective debts due to rising interest rates.

It is noted that with a common goal of assisting the borrowers, each Management Company will formulate the conditions and criteria for belonging to the respective program, in accordance with its procedures and policies. Borrowers (natural persons) with informed variable rate mortgages will automatically be included in the above favorable programs, without requiring any action on their part. For more details, each borrower can contact the Management Company they work with.

Regardless of the above initiative, the Management Companies provide an additional number of settlement possibilities to any debtor who wishes to settle his debt on sustainable terms.

It is recalled that for the first half of 2023, the Management Companies have set the goal of loan arrangements and arrangements to reach €3.2 billion, increased by more than 30% compared to the same period in 2022.

The sector of Loan and Credit Claims Management Companies is one of the most strictly regulated in Greece. The main mission of the Management Companies is the substantial resolution of the lending problems faced by households and businesses, the consolidation of the financial system and the strengthening of liquidity conditions in the Greek Economy.