Government, banks agree on extension of law protecting main residencies

Government, banks agree on extension of law protecting main residencies

The government and the country’s systemic banks agreed on Friday to extend a legislation protecting primary residencies from auctions by two months, following a meeting of Prime Minister Alexis Tsipras with the Hellenic Bank Association (HBA) at Maximos Mansion.

The legislation, known as Katseli Law, suspended the auctioning off of the main residencies of indebted Greeks. It was introduced by former economy minister Louka Katseli and was due to expire on December 31.

In a press release after the meeting, the prime minister’s office said the two sides agreed to extend the law until the end of February 2019 to allow time to form the “new necessary framework for the protection of the primary residence and a bankruptcy law for private individuals.”

Speaking after the meeting, HBA Chairman Nikos Karamouzis said: “Both sides want to find solutions that protect society and the primary residence, but mainly ensure the robustness and prospects of the banking system. We’re on the right path.”

Asked about the extension of the Katseli law, Karamouzis said the decision is for the government to make. 

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