The head of Piraeus Bank Mihalis Sallas made a proposition in order to solve the problem of ‘red loans’ and ‘disarm’ the “imminent bombing” that threatens thousands of mortgage holders. Speaking to Proto Thema, he explained his proposal, saying that the ‘red loans’ is a huge problem that the country has to face and its social, financial and political aftermaths have been underestimated. The head of Piraeus bank expressed his proposal about the “frosting “of a big part of the loan, which will be deleted if the properties prices won’t be regulated. The rest of the part will be paid off depending on the economic ability of the loaner. Mr Sallas’ intervention is very important given the fact that it comes in a period when the auctions have already began. Mr Sallas added that “the situation of the people and the country is tragic. In a few years, GDP was reduced by 30%, the number of unemployed people reached 1,5 million and 1 trillion Euros was lost from the Greek people’s fortune. The responsibility is everybody’s, especially the political system of the country. The institutions should accept a different solution and show a bigger responsibility in front of such a catastrophe”.
According to his proposition, the banks could separate each red loan into two parts. The first part that will correspond to the 90% of the property’s worth, will be proposed from the bank for sales & lease back. In that way, its duration will be extended and the monthly installment will be reduced, depending on the abilities of the loaner. From the other part of the loan, in case the values of the properties haven’t changed in 5 years, a 50% of the difference between the whole amount of the loan and the amount that has turned into a sales and lease back. The rest 50% will be deleted in the next five years, in case the  properties prices won’t be regulated. This solution will satisfy hundreds of thousands of loaners, it would protect the properties’ values and would not destroy the banks’ balance.