Instructions on Red loans by the Bank of Greece

Decisions were made in order to tackle the households growing problem of red loans

Partial waiver, collateral by the borrower, sale or rental of property and even granting the right to stay in the property under lease, are some of the illustrative arrangements proposed by the Bank of Greece to credit institutions in Greece, in order to tackle the households growing problem of red loans.
Amongst other alternatives presented regarding businesses, is the operational restructuring of business , when the creditor banks consider them viable under certain conditions. Also, settings include debt swaps with equity.
This Act will be effective as from 31 December 2014. Also by the 30th of September an upgrade will be made to the systems and the integration of functional requirements (design type settings, planning assessment methodologies, etc.).
The Bank of Greece ‘s decision that was published in the Gazette today (serial number 1582), sets out the ways in which banks will be facing the impact of late payments in the future.