By Vangelis Dourakis

‘Brake’ in… persistent banks and servicers to regulate debts ‘Red’ Borrowers through an out -of -court mechanism is trying to put the Ministry of National Economy and Finance. The data so far shows that the financial sector avoids arrangeing debts by utilizing this “tool”. Thus, the out -of -court has been substantially turned into an alternative debt settlement mechanism to the tax office and insurance funds.

The contribution of the out -of -court debt arrangements to private creditors is extremely limited and it is indicative that until recently just a quarter of the debts they had been set for loan debts, while almost the 75% They are tax and insurance debts.

What does the arrangement promoted

Thus, legislation is promoted so that the “privilege” that had so far had very few vulnerable debtors, that is, to regulate their debts through out -of -court without being able to “block” the regulation by Banks and Servicers, now extending to an expanded number of debtors. , as the relevant income limits double.

Until now, a household with income from 7,000 to 21,000 euros could be included in the vulnerable category. Now, these limits are doubled: from 7,000 to 14,000 euro for one -person household, in 21,000 euro for two members, 28,000 euro for three members, 35,000 euro for four members and 42,000 euro for five members and above. The assets, which will range from 240,000 euros to 360,000 euros, depending on the number of members of the family, are also adjusted.

In other words, it will be allowed to a larger number of debtors be included in the class of ‘Vulnerable’for which it is foreseen that the arrangements with the Out -of -court mechanism They become automatically, that is, without the ability of the creditor (service, bank) to “block” them.

Servicers obligation to propose debt settlement before auction

The ministry will promote other extremely interesting ‘Improvements’ To facilitate debtors and specifically:

  • It is provided for the creditor to have deposited a written proposal to the debtor prior to the auction. In all cases, the creditor is obliged to submit a proposal to the debtor before proceeding with auction by any appropriate means (mail, phone call, etc.). This will be done if the debtor has been registered in electronic
  • Personalized information platform to give at least his email and phone number.
  • Debtors who cannot be bankrupt because they do not have the financial means to cover the costs of the bankruptcy procedure, for which they are currently set to register their name in the Solvency Registry, will be permanently exempt from their debts with a law exemption. .
  • The deadlines are expanded to make the vulnerable debtor enter the intermediate program. Interested parties can currently apply up to 60 days before the seizure, freeze the auction and receive a loan subsidy. Instead of 60 days, the deadline is transferred at least 20 days before the auction. It also extends the intermediate program for four months, and expires in March.
  • The possibility of regulating public guarantees is expanded through the business consolidation process.
  • There is a permanent mechanism for compensation by a life guarantee in order to make more favorable arrangements for Aspis Providence Insured. So far there have been legislation for the payment of EUR 45 million to the injured. Instead of continuous arrangements, a permanent compensation mechanism is created, provided that compensation will not exceed 25% of the guarantee’s cash.