The non performing loans (red loans) will be transferred to distress funds immediately, according to provisions in the new draft bill of the memorandum. The only mortgage loans protected, until January 1 2018, from the immediate liberalisation are those directly or indirectly linked to main residence properties.

According to sources cited in ‘Nea’ newspaper, even these protected mortgages only concern properties worth an objective market value of 140,000 Euros.

The same sources claim that the draft also compels the Greek government to amend a previous law regarding ‘red loans’, allowing the sale of non performing and other loans not only funds operating in Greece, but also to legal entities set up in every EU member state and third countries. Furthermore, the draft provides that the tax treatment of funds will be in line with EU regulations.