ECONOMY

New bank programs to contain bad loans

Local banks are offering new programs for the settlement of outstanding loan payments, providing for the postponement of debt payment for up to 10 years. The new programs will likely become available to bank clients as early as next month.

This new generation of repayment programs will allow for 50 percent of each loan to be frozen, cutting borrowers’ monthly installments in half while no interest is charged on the rest of the loan.

The new settlement schemes will be made available to borrowers who are currently unable to pay their installments in full even if they have entered a payment plan. However that inability will have to be proven with certified documents regarding their incomes and property assets.

Two banks have already started to promote such schemes. The aim is to contain the huge volume of nonperforming loans, which despite various arrangements currently number 1 million loans.