ECONOMY

Debtors show keener interest in protection applications

debtors-show-keener-interest-in-protection-applications

The online platform of the Special Secretariat for Public Debt has seen a 65 percent spike in applications by borrowers for the protection of their primary residences in the last month.

The latest figures (up to last Friday) showed an increase in applications to 1,316, compared to 795 by end-November. The number of arrangement deals banks have proposed to debtors also grew 107 percent to 367 from just 177 at the end of November.

The main reason for borrowers’ sky-rocketing interest lies in the simplification of the application process voted into law a month ago; this consists of the scrapping of the obligation to submit a land certificate and a printed estimate of the value of each borrower’s movable assets.

According to the official figures issued by the secretariat, concerning the period from July 1 to December 27, 57,956 debtors entered the website and consented to having their bank secrecy lifted, 38,563 of them have begun the process to prepare their application, and 1,316 applications have been submitted and forwarded to banks, which have already issued 367 settlement proposals. Borrowers have accepted 112 of those proposals, with 56 payment plans having been approved for state subsidies.