MPs to vote on bill giving bank customers longer to repay loans

A bill proposing that bank customers who have difficulty repaying their loans should be allowed to do so in up to 48 installments is to be voted on by Parliament later on Monday.

The draft law was due to be debated last week but was delayed after objections from two of the three coalition parties, PASOK and Democratic Left.

The bill allows financially troubled households a moratorium of up to 48 months on their loan or mortgage repayments. There are certain criteria that the bank customers have to fill and their loan must be secured against a property that has a taxable value of no more than 180,000 euros.

Four Democratic Left MPs have also submitted a proposal for the freeze on home repossessions to be extended until the end of 2015.

Currently, banks cannot repossess homes over unpaid debts if the property is the customer’s main abode and has a taxable value of less than 200,000 euros.

However, legislation applying these restrictions is due to expire at the end of the year.