ECONOMY

Two-month extension planned for Katseli law

two-month-extension-planned-for-katseli-law

The government is considering an extension to the protected status of overindebted borrowers’ main residences (as provided through the so-called Katseli law) until a permanent protection framework is agreed with the country’s creditors.

Sources have told Kathimerini that the extension will be for two months, as this is the time that Athens expects it will need to reach an agreement with the creditors and the banks on the new form of protection to debtors who have sought refuge in the provisions of the law introduced by former economy minister Louka Katseli.

The ministry will have to draw up its proposal by January 15 and forward it to the creditors ahead of their representatives’ visit to Athens on January 29.

Deputy Prime Minister Yiannis Dragasakis said on Tuesday the Katseli law prevented the worst during the crisis, but cannot be used as an instrument for social policy.