M. Katrinis: Suffocation in households and businesses from the increase in private debt and the auctions of first homes

About the “suffocation in households and businesses from the increase in private debt and the auctions of the first home”, the head of the KO of PASOK, Michalis Katrinis, addresses a topical question to the Minister of Finance, Christos Staikouras.

Mr. Katrinis states that the problem of private debt has taken on an uncontrollable dimension and is leading to a dead end for households and businesses.

The head of PASOK’s KO talks about the government’s inability to provide a solution to the problem and notes that all its policies have completely failed.

The out-of-court mechanism failed, since less than 3,000 arrangements were made in 19 months, while the failure of the bankruptcy code is added to the failure of the pandemic debt arrangement, with only 6% of debtors under arrangement, says Mr. Katrinis and reinstates PASOK’s proposal for a new regulation of 120 installments for tax-EFKA debts, but also for the protection of the first home, pointing out that the risk of mass auctions of first homes is visible.

As he points out, 50,000 auctions are planned in 2023, since there is no longer a protection regime for weak borrowers, while the decision of the Supreme Court is expected on January 26 on the conduct of auctions by loan managers.

Michalis Katrinis cites evidence that, as he says, proves the magnitude of the problem, which the government “underestimates and hides until the elections”.

According to these:

-Private debt has reached 270 billion euros.

-4.2 million citizens have debts to the tax office.

-Over 1 million are the “red” loans.

“The government is hiding, along with many others, under the carpet the problem of private debt until the election. And yet this problem is the biggest bomb in the foundations of economic and social stability”, says Mr. Katrinis.

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