Wednesday November 26, 2014 Search
Weather | Athens
12o C
9o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
One in five could pay off bad loans

 Many borrowers claim they cant service their debts but take advantage of measures to help truly needy

By Alekos Lidorikis

The majority of citizens with debts that are not being serviced have genuine difficulties in repaying them, and it is they who will benefit from the solution being sought to relieve them from that burden. However around 20 percent of debtors are strategic defaulters, taking advantage of the economic crisis so as not to pay their dues, a senior bank official told Kathimerini.

In housing credit, estimates by bank officials converge on the view that about 15-20 percent of nonperforming loans, or 4 to 5 billion euros out of a total 25 billion, could be serviced.

About one in every six who have taken out a mortgage loan and claim they are unable to make their payments could service them properly, the same senior official said.

In consumer credit, out of a total 10 billion euros of bad loans, estimates say debtors could in fact service loans worth between 2 and 2.5 billion euros i.e. some 20 to 25 percent.

These so-called strategic defaulters are borrowers who have taken out mortgage or consumer loans and can afford to repay them but are taking advantage of the consequences of the economic crisis and benefiting from bank payment plans or legislation drafted for those in real need of support. They declare that they are unable to service their debts so as to cut their installments down to a minimum level, concealing their actual incomes and property assets.

Senior credit sector officials agree that about one in every three borrowers who have resorted to the protection offered by a 2010 law (named after the economy minister who introduced it, Louka Katseli) do not fulfill the criteria laid out in that regulation. Applicants for protection from creditors number 150,000 for debts adding up to 12 billion euros.

Bank officials add that when the lenders informed borrowers about the consequences of coming under the protection of the Katseli law, some 30 percent of the applicants said they would withdraw their application and instead try to enter a payment plan. That was because many of those borrowers had not realized that the provisions of the Katseli law call for the applicant to declare bankruptcy, which would put them under monitoring for the rest of their lives.

ekathimerini.com , Friday Jul 18, 2014 (22:07)  
Debtors snap up offer for easier settlements
Belgium gas firm said to be eyeing DESFA
OLP approval paves way for investment in Piraeus
Airport tender exceeds expectations
Hundreds of migrants on crippled ship off Crete
Ships from Greece rushed to help after a crippled freighter crammed with hundreds of migrants floundered for hours Tuesday in gale-force winds and high waves in the Mediterranean Sea, offici...
Policemen suspected of working at Piraeus bar where shooting took place
At least three serving policemen are thought to have been working at the bar in Mikrolimano, Piraeus, where a 31-year-old man opened fire with an AK-47 early on Saturday, resulting in 15 peo...
Inside News
SOCCER
Atletico eyes last 16 berth against Olympiakos
Greek champion Olympiakos faces a tough task if it is to prevent last season's beaten finalist Atletico Madrid sealing its passage into the last 16 of the Champions League at the Vicente Cal...
SOCCER
EPO ends soccer suspension, Super League resumes
Soccer action will resume this weekend after the Super League convened on Monday, elected a new president and alternate president and sent a letter to the soccer federation that assures it t...
Inside Sports
COMMENTARY
Beware of the fallen idols
Akis Tsochatzopoulos, a legendary figure of the Greek socialist movement, a man who came very close to taking over the party that governed the country for half of the time following the fall...
EDITORIAL
The hard truth
The coalition government must tell the truth to the Greek people, even if this entails admitting to mistakes made over the last few months. The countrys citizens are fully aware of how cruc...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Hundreds of migrants on crippled ship off Crete
2. Atletico eyes last 16 berth against Olympiakos
3. Debtors snap up offer for easier settlements
4. Belgium gas firm said to be eyeing DESFA
5. OLP approval paves way for investment in Piraeus
6. Airport tender exceeds expectations
more news
Today
This Week
1. Anastasiades to undergo heart surgery in the US on Dec 4
2. Cargo vessel carrying hundreds of migrants adrift southeast of Crete
3. Trade deficit widens by 8.7 percent during Jan-Sept period, says ELSTAT report
4. Two police officers among 9 arrested for drug trafficking
5. Fraport, Copelouzos offer highest bid for Greek regional airports
6. Stop Mediterranean becoming vast migrant cemetery, Pope tells Europe
Today
This Week
1. Double quake on Atalanti fault line rattles Greek capital [Update]
2. Biden heads to Istanbul amid tension over Cyprus EEZ violation
3. Give Greece a chance
4. Every age has its collaborators
5. Carlsberg takes control of Greek brewer Olympic Brewery [Update]
6. Scientists expand excavation of ancient Amphipolis
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.