Safety net for vulnerable households

Safety net for vulnerable households

After the strategic defaulters have been exposed, according to government planning, and the existing framework for the protection of borrowers’ main residence has expired on April 30, truly vulnerable households will get a safety net if they cannot service their dues, so that they are not left on the street.

Although the contents of the blueprint for the protection of the most vulnerable have not yet been determined in their entirety, the bill is already taking shape and sources say it will concern two aspects: that before the asset is auctioned and that afterward.

Vulnerable households who are unable to pay their tranches will be able to enter a special payment plan with the state subsidizing their installments in part or in full so that they can hold on to their homes. This will be similar to the extrajudicial debt settlement mechanism. Those households that eventually see their home repossessed and auctioned will be granted a form of rent subsidy by the state so that they can cover their housing needs, while the solution applied in other countries, whereby borrowers remain in their homes by paying rent to their bank is considered hard to implement in Greece.

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