ECONOMY

Foreclosure protection to be tightened

foreclosure-protection-to-be-tightened

Tougher criteria for the protection of primary residences from foreclosure, including the fast-tracking of cases, have been included in new laws proposed by the Greek government to tackle the issue of bad loans. The new laws form part of the SYRIZA government’s commitment to easing the country’s so-called humanitarian crisis.

These include the possibility of joint ventures between banks and debt management companies which will promote active policies such as the transfer or sale of property to a third party in cooperation with the loan holder and real estate agencies.

The government plans to create a permanent safety net, including measures to support vulnerable groups and distinguish between those who can pay back loans but won’t and those who genuinely can’t. By November of this year, the Council of Private Debt must be established to facilitate the measures.

Additionally, by December, the government must establish a coordination system for dealing with borrowers with substantial debts to the state and other bodies, the classification of commercial borrowers and legislation to facilitate the rapid clearance of nonperforming loans.