ECONOMY

No more than 180,000 borrowers qualify for new protection system

no-more-than-180-000-borrowers-qualify-for-new-protection-system

Fewer than half of the 400,000 borrowers who are not servicing loans secured against their primary residence stand to benefit from the new regulations on the protection of debtors’ homes that were agreed on Thursday by the government and the managers of Greece’s systemic banks.

The deal reached during a meeting at Prime Minister Alexis Tsipras’s office provides for the potential inclusion not only of defaulted mortgages in the new system, as the Katseli law provides for until February 28, but also of corporate loans secured against the debtors’ primary residence.

It is this opening up of the pool of borrowers to those with corporate loans that takes the number of potential participants in the new process to 180,000 according to bank estimates.

The sum of the loans that enter the new arrangement is expected to reach 10 billion euros.