A proposal for dealing with the problem of “red” property loans that absolves mortgage holders from the threat of an auction, made the Head of Piraeus Bank Michalis Sallas. It is a groundbreaking proposal which calls for a freeze of a big part of the loan that will be crossed off in a certain amount of time if the property prices haven’t settled down. As far as the rest of the loan is concerned, it can be paid off depending on the ability of the mortgage holder.
Mr Sallas intervention is of premium importance, since it is established in a time when the property auctions begin and the banks are about to firm up the goal of reducing the bad loans with the European Central Bank.