New single framework for insolvent borrowers

New single framework for insolvent borrowers

The government will create a new framework on insolvency, Finance Minister Christos Staikouras said at an American-Hellenic Chamber of Commerce forum on Tuesday.

“Our aim,” said the minister, “is to create a modern and single framework for insolvency, whereby households and businesses will be able to arrange all their debts in one integrated approach.”

The frameworks on the insolvency of individuals and the protection of borrowers’ primary residences have been among the priorities of the country’s creditors. Sources say that during the most recent Eurogroup Working Group, Germany made no secret of its disagreement with the extension of the main residence protection framework by another four months.

A government source said the objective is to create a single system with timely warning mechanisms to prevent the amassing of debts, as well as debt settlement mechanisms.

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