The way that bad loans are tackled in Greece has been quietly changing, with the opening up of property auctions and recent changes to legislation that put an end to forcing the sale of properties at their so-called “objective” value – allowing for the use of the market value instead – and reducing the period of liquidation from 10 years to just three to five.
At the same time, banks have prepared new products and new procedures in addition to obtaining the necessary know-how for dealing with nonperforming loans.
The sale of repossessed properties will now be conducted in a consensual way following consultations with the borrower.
A key role will be played by the new companies banks will set up with firms abroad to manage the bad loans in cooperation with the borrowers and lenders, which will involve proposing solutions.
To that end, estate agents are already being sought as partners for the development of a reliable network.