In his plan SYRIZA-PS for a new institutional framework that “will ensure the first home from auctions, protect households and put an end to the current chaos with the enormous private debt”, said the representative of the party, Popi Tsapanidou, in the wake of yesterday’s presentation of the SYRIZA-PS proposal for the protection of the first home, commercial housing and agricultural land.

“THE Alexis Tsipras said yesterday that he will put an order to the private debt, which with 4 years of government Mitsotakis increased by 40 billion. It will bring order to this vast landscape with 4.2 million borrowers unable to pay their debts, whether they are in public funds or in banks. At the moment there are 1 million bank accounts confiscated”, underlined Popi Tsapanidou, listing the main points of the SYRIZA plan.

“Our proposal provides for an extrajudicial mechanism, which will oblige all creditors, whether they are public, banks or funds, to enter into negotiations with the borrower, on the relevant platform that will be created, and to propose a viable repayment plan. This process will concern those who have a real inability to pay their arrears. Once the application is made by the debtor on the platform and a relevant proposal is presented to him by the lender, then there are two options. One is the shortest repayment within 5 to 10 years, which includes a brave haircut of 40% to 60%. The installment will be partially subsidized by the state to keep the loan in the red and it will be ensured that the agreed installment will be up to 30% of the borrower’s income. The second option is to arrange the debt with a long repayment period and low installments. And there is a subsidy from the state and a fixed interest rate of 2%, so that there are no burdens from the continuous increases in interest rates”, pointed out Popi Tsapanidou».

He then noted that “there will be an institutional framework for this whole process” and explained: “A deputy ministry will be established in the Ministry of Finance, responsible for the management of private debt and housing policy. There will be a public supervisory authority to monitor how all this is implemented and at the same time there will be resources from the Development Bank that will go to debt restructuring and housing policy. We repeal the bankruptcy law of the Mitsotakis government, which under the HERACLES plan was linked to the 2003 law, allowing servicers to freely proceed to auctions. This is what we are coming to change now.”

The representative of SYRIZA-PS also referred to the political developments, underlining: “There is isolation of Mr. Mitsotakis at the European level, European institutions are discussing telephone monitoring and the rule of law in Greece which is not doing well at all.” “But also in the economy, everyone is living the current situation, with the income not being sufficient, not even for basic needs. In view of the elections, Mr. Mitsotakis can also issue a forget pass so that we forget what happened during the years of his government…”.

In closing, he mentioned the possibility of forming a government of cooperation: “On May 21, SYRIZA-PS will be the first party to form a government in cooperation with the other progressive forces. With the first place of SYRIZA-PS in the simple proportional ballot box, the progressive forces will sit at the table and we will be able, through convergences, to find a solution for the next day”.