“The Draft Law of the Government on “Loans: Transparency, competition, protection of the vulnerable – Incorporation of Directive (EU) 2021/2167″ which was posted for consultation is far from the goals it proclaims in its title” says PASOK-KINAL in a statement Private Debt Sector of the party.

He points out that interventions are minimal for households and businesses facing insurmountable difficulties in servicing their debts.

“The reality is that the government is letting another opportunity to tackle the private debt problem go to waste”, notes and strongly criticizes the specific bill. As he underlines: “The government presents as a new legislative initiative its obsession with failed tools and practices.

Each time, monotonous and predictable now, he is limited to making minor improvements to them, which ultimately have the purpose of hiding the absence of substantial civil protection for weak borrowers, who only experience disappointment from their application to date.

The only 200 vulnerable borrowers who have requested the protection of their residence in the interim program and the 3.5 billion debts of uncertain, in terms of their sustainability, arrangements in the three years of operation of the extrajudicial mechanism, when tens of thousands of auctions are in progress and private debt reaches 260 billion, they confirm it”.

PASOK-Movement for Change states that a comprehensive plan is needed to deal with the huge social problem of private debt and formulates specific legislative proposals, such as:

  • the protection of the main residence and the decent living of households that are proven to be in repayment difficulties,
  • the establishment of binding rules that will oblige the funds to realistic and sustainable arrangements,
  • the protection of agricultural property,
  • the introduction of a bankruptcy law that will emphasize the consolidation and rescue of businesses,
  • the creation of effective out-of-court debt settlement mechanisms, with the production of incentives but also the provision of penalties for creditors who do not participate with substantial proposals in them,
  • the imposition of ethical rules on loan servicers, so that debtors have decent treatment and protection of their rights, and not only in terms of information about their debt,
  • the settlement of overdue debts to the public and insurance companies in 120 installments, with a write-off of 30% of the debt, as long as the settlement is observed
  • the promotion of the rules of responsible lending within the banks, the limitation of loan sales, the granting to borrowers of the option to purchase their loan,
  • protecting borrowers from non-transparent practices and excessive interest rate hikes.
  • addressing the injustices of the past and the impasses to which households have been led because of them, such as with the fair distribution of exchange risk in Swiss franc loans, the improvement of the position of guarantors, etc.