The Greek Ministry of Development is close to locking in its deal with Greece’s international creditors (EC, ECB, IMF, ESM) concerning the protection of primary residences from foreclosure. The agreement is expected to bring respite to thousands of households – known as “red” borrowers – that are struggling with mortgage debt. Greek daily newspaper Eleftheros Typos reports that Economy Minister George Stathakis and Alt. Minister of Finance George Chouliarakis are currently negotiating for the future of two out of three households in debt, however the future of 35% of households will still be left undetermined as the restructuring of the Banking Code of Ethics still remains in the air.

The new proposals offered to creditors cover 65% of debtors who have nonperforming loans, a drop from the 72.4% that had been covered by the previous Greek proposals. Eleftheros Typos reports that Greece’s creditors have softened their stance while the Greek government has also caved in on its resolution to protect all home owners in an effort to find common ground.

Sources state that there is alignment concerning objective vaues. Homes valued from 150,000-180,000 may be protected according to the current deal (a drop from the 200,000-euro line drawn by the previous proposal), however creditors are pushing for the primary residence value to be safe from foreclosure to be 120,000 euros and lower. It should be noted that from 2005-2009 the banks were happily giving away home loans worth 110,000 to 120,000 euros in an explosion of loans of this time, without saying that there weren’t loans as high as 200,000-300,000 euros.