ECONOMY

Primary residence protection set to stop after May 31

primary-residence-protection-set-to-stop-after-may-31

The government and its creditors have clinched an agreement that will remove restrictions on foreclosure auctions for all properties on June 1, including primary residences, sources told the Athens-Macedonian News Agency on Sunday.

The out-of-court settlement mechanism for settling household and business debts, as introduced by the new bankruptcy law, will also launch on the same date.

Draft legislation for the above measures is to be tabled in Parliament by the Justice Ministry in the next few days and will determine which borrowers will fall under the category of those affected by the pandemic, for whom primary residence protection is extended until May 31, instead of the initial final date of March 15.

In addition, their case must meet additional criteria, including: that the value of the property does not exceed 300,000 euros; that the annual income in the last year that taxes could be declared did not exceed €24,000 (increased by €18,000 per spouse/partner and €5,000 for each dependent, up to a maximum of three); that household deposits and investments do not exceed €40,000; that the total unpaid capital and interest is not greater €300,000; that the real estate holdings of the entire household and dependents, including the primary residence, do not exceed €600,000; and that any vehicles or means of transport acquired in the last three years for private use are not worth more than €80,000.