According to sources of the Ministry of Development and Competitiveness, the government’s clear priority is business loans rather than mortgage and consumer loans, to reduce increments in business debts (or even eliminate the increments) and strict control in order to prevent those who were not affected by the crisis to be included in the new loan adjustments.

Specifically, the aim of the Minister of Development and Competitiveness Nikos Dendias is to include the term “crisis victims” in the final draft to be presented, which will identify clearly that the inclusion in the favorable adjustments for the red loans addresses businesses and individuals actually affected by the crisis.

According to ministry’s sources, there would be a specific time limit defining the beginning of the crisis. So, those who have loans that are not repaid before that time they will not be considered as “crisis victims” and will not be included in the favorable adjustments. This time limit is set in 2009 or more likely in 2010, even though the date has not been determined yet.

This adjustment is important in order to prevent the businesses and individuals who have accumulated unpaid debts long before the crisis had started to be included in the favorable adjustments. From now on, these debtors will be characterized as “strategic defaulters”.

The ministry’s priority is business loans rather than mortgage and consumer loans, since the debts from business loans are greater reaching 42 billion euros out of 77 billion euros, whereas mortgage and consumer loans reach 25 billion euros and 10 billion euros, respectively.

Moreover, the new bill will promote a more drastic reduction in loan increments. “Just think about it: there are cases in which the debtor is called to pay 70,000 euros for a 7,000 loan due to increments. The state will intervene in such cases” said a valid source.