The coalition government is striving to confront the problem of nonperforming loans (NPLs) extended to households and businesses through a number of concurrent measures.
Government officials are examining revisions for pre-bankruptcy procedures available to large enterprises, which would reportedly facilitate creditor interests. As for households, a code of ethics approved by the Bank of Greece last week will serve as a basic tool for combating NPLs. It lists a series of solutions that may be offered by banks to debt holders of unserviced loans. Debt holders, however, will need to be categorized as “cooperative” by banks to qualify for loan revision solutions.
Essential household living expenses are expected to be factored into calculations for home, personal and small-business loan payment revisions. These figures will be based on studies conducted by the Greek statistical authority for various household sizes.