ECONOMY

Huge distance in talks over exemptions to NPLs that can be transferred

huge-distance-in-talks-over-exemptions-to-npls-that-can-be-transferred

The transfer of nonperforming loans from banks to other companies has evolved into one of the toughest issues in negotiations between the government and creditors.

The distance between the two sides is growing instead of diminishing, with creditors insisting on the full liberalization of the sale of debts to non-banking institutions, drawing from all categories of loan contracts, including primary residence mortgages.

The Greek side is not limiting itself to fine-tuning the provisions of the 2015 law but proposes a series of exemptions, which the creditors perceive as a significant departure from the pledges the government made in last summer’s bailout agreement. Kathimerini understands that a proposal presented by Economy Minister Giorgos Stathakis to country’s creditors includes the following exceptions from the sale of NPLs to other investors: Loans up to 500,000 euros to small and medium-sized enterprises, loans to self-employed professionals up to 250,000 euros, consumer loans up to 25,000 euros and all loans (not just mortgages) that are secured on primary residences.

The creditors counter that any protection should only apply to the socially and financially weakest groups, with specific criteria.