Debate on foreclosures

The ongoing debate as to whether the Greek government should lift restrictions on home foreclosures to allow banks to recover bad loans is – as is so often the case in this country – taking place in an irresponsible and risky manner.

For better or worse, credit institutions are necessary for the the operation of the country’s financial system. At the same time, kick-starting economic growth goes hand in hand with strengthening these institutions.

However, banks rely on good faith – and this factor is being undermined daily by endless statements and disagreements over home auctions.

Unchecked populism and scaremongering over the issue are extremely counterproductive.

The authorities need to come up with a solution that will make sure that the most vulnerable sections of society who cannot afford to lose their home are protected. At the same time, the solution should not be harmful to the country’s credit system.