The Code of Practice includes the steps, deadlines and settlement solutions for the management of non-performing loans which were approved today by the Executive Committee of the Bank of Greece.
The current solutions include the following setup:
– Interest only during a short period.
– Reduced amortization installments during the short period.
-Grace-period.
– Postpone installment Payment / Installment.
– Settling overdue balance.
– Capitalization delays.
Long term solutions adjustment
– Fixed interest rate reduction or conventional margin.
– Change Release Rate (eg from floating to fixed).
– Extension of duration
– Separation of mortgage loan:
a) sustainable loan with collateral, which the borrower repays based at the estimated future repayment ability, and
b) loan balance, in which subsequent interest will not be counted until a later payment date.
– Transition of property ownership to a bank and rent the accommodation
-Loan conversion loan to leasing and buy in an agreed amount at the end
– Exchange with a smaller loan amount (for special occasions).
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