The activation of the platform for the protection of primary residences will mean that all the debtors who had applied to go under the shield of the so-called Katseli law without fulfilling the required criteria will henceforth be on their own.
The General Secretariat for Private Debt’s new platform, which will examine all pending applications, will be ready for use by September. It will also operate in parallel with a new system for the protection of main residences that will start receiving applications in early July.
The examination of the outstanding applications for protection under the law named after former economy minister Louka Katseli – estimated to number some 150,000 – constitutes a government commitment to the country’s creditors; Athens has also pledged to examine the merging of the Katseli law with the new law for the protection of primary residences that further provides for those unable to service their debts to banks to receive a state subsidy.
A law preparation committee has already been created to examine this project and the new single law will start applying from early 2020.
The screening of pending applications by the new platform, before the cases reach the courthouse, will allow for the identification of strategic defaulters, who are estimated to comprise some 20 percent.