ECONOMY

Second chance will be offered to borrowers

The Development Ministry is promoting a second chance for mortgage holders who are temporarily unable to pay their installments and do not meet the criteria for entering a payment plan for reliable borrowers.

Depending on their income, borrowers will be able to repay a small amount of money every month in exchange for the suspension of any action against them, provided that their home is valued at no more than 150,000 euros, although the precise threshold is yet to be determined.

The proposal was formulated as part of the government’s negotiations with its creditors and represents a transitional stage before the full liberalization of home repossessions. Ministry officials say that some understanding has already been reached on the issue between the two sides. Reaching an agreement is of utmost importance for the negotiations with the creditors’ representatives, and it is no coincidence that Mario Draghi, the European Central Bank chief, has branded repossessions “a major issue.”