The Greek government will soon announce a solution through an out -of -court settlement for Swiss franc mortgages, two sources told Reuters on Tuesday.

More than 50,000 Greeks have received mortgages in Swiss francs in the mid -2000s. Now their repayment has become difficult after the Swiss francs have been launched against the euro.

“The proposed settlement will be announced in the coming weeks,” a senior government official told Reuters with knowledge of the issue.

On a voluntary basis

The plan will be on a voluntary basis. It will provide a favorable conversion of the rest of Swiss francs into euros, with a deduction of between 10% and 25% in the exchange rate depending on borrowers’ income, a bank source told Reuters with knowledge of the issue.

Currently, out of the approximately 37,000 remaining loans, 20,000 are in the banks, and 17,000 are precarious loans managed by Servicers.

The total value of loans is valued at around € 5 billion.

The proposed arrangement will not affect the “Hrakles” plan for red loans, according to a government official.

The settlement will amount to tens of millions of euros for each bank, depending on the borrowers’ participation in the regulation, a banker told Reuters without giving further details.

Borrowers, however, estimate that the proposed plan will not provide sufficient relief, reaching a few thousand euros to each debtor, and are already burdened with an additional 70% increase in their original loan.

“These are crumbs. The case remains open, we have three collective lawsuits pending in the courts, “said Despina Soniadou, president of the” Borrower Association in Swiss franc “.