ECONOMY

No negative impact on banks from new protection system

no-negative-impact-on-banks-from-new-protection-system

The new framework for the protection of borrowers’ primary residences won’t have a negative impact on banks, according to the impact assessment the Bank of Greece has conducted and sent to Greece’s creditors.

The amount of loans that would potentially be affected by the new law comes to 11 billion euros, of which 9 billion concerns housing loans and the rest are corporate loans secured against main homes.

Banks’ estimates say the new framework offers incentives to borrowers currently protected by the Katseli law to have their debt restructured according to the new system.