Loan arrangements were yesterday at the center of the meeting of Finance Minister Christos Staikouras with servicers. According to information, the two sides noted the progress that has been made, while they discussed their forecasts for the rest of 2023. The meeting was attended by the heads of the companies as well as Mr. Spyros Pantelias from the Bank of Greece. The meeting appears to have been held in a good mood with the minister asking for the continuation of loan arrangements. Management company representatives have reportedly agreed to “pick up” the pace of regulation, while they have been asked to present their plans for the current year.
According to information, the Minister of Finance requested that even more moves be made towards the regulation of “red” loans both bilaterally and through the Extrajudicial Mechanism.
So the servicers will come back with specific proposals in the next few days. It is recalled that according to data from the Bank of Greece, servicers have taken over the management of 92.7 billion euros of non-performing loans.
The information about the Extrajudicial adjustment
At the same time, the data shows that the 20 companies – members of the Association of Loan and Credit Receivables Management Companies (EEDADP) have proceeded from 2020 until today to loan arrangements of all categories, totaling more than 17 billion euros, of which eight billion euros outside bank portfolios and more than 8.5 billion euros from the banks that have now been converted from non-performing to informed assets.
As for the Extrajudicial Mechanism, the most recent figures show that the arrangements “rose” to 2,705 – up from just 416 in July 2022 – amounting to 822 million euros, with the average debt standing at 291,000 euros. The approval rate based on total debt for financial institutions (servicers and banks) increased to 69% compared to 65% the previous month, with acceptance of the arrangements reaching 74% in multilaterals compared to 58% in November and 67% in bilaterals (Domestic Revenue – social security/EFKA) from 69%.
Who it concerns
Also, 74% of the debts, amounting to 18.7 billion euros, concern natural persons, with 79% of the debts being to financial institutions (banks and servicers), while the average duration for debts to the State is 18 years and to financial institutions in 15 years.
33% of the debts were settled with a duration of more than 20 years. The average duration for housing debts is 23 years and for business debts 12 years, while the average write-off rate for debts to the State is 20.4% and to financial institutions at 30.8%.
Finally, 39% (320 million euros) of the arrangements have received a deletion rate greater than 30%. In mortgage debt, the write-off rate is 21.9%, in business debt at 39.1% and in consumer debt at 31.7%.
Latest News
Bank of Greece Governor Says EU will Retaliate to Trump’s Tarrifs
The Bank of Greece Governor defended the independence of central banks amid criticism from U.S. President-elect Donald Trump, who had publicly commented on Federal Reserve Chair Jerome Powel
September in Greece Winning Tourists Over from US, Germany
Tourists continue to visit Greece off-season into Sept. with the number of inbound travelers up by 6.6% and a 7.9% rise in travel receipts.
Bitcoin Surges Toward $100K Amid Pro-Crypto Optimism in US
According to Reuters, the cryptocurrency surged to an all-time high, briefly exceeding $96,898 during Asian trading hours.
Greek Driver Violations at a Touch of a Button
Traffic offences recorded in the last five years by Greece’s “Driver Behavior Control System” are now available on Gov.gr Wallet
Milan Tops List of Most Expensive Streets, Athens’ Ermou Holds Steady at 15th Place
In Athens, following Ermou Street is the southern suburb of Glyfada and Tsimiski Street in Thessaloniki.
New Gov.gr Service Enables Secure Reporting of Minor-Related Delinquency
It should also be noted that via the recently introduced initiative ‘Safe Youth’ application citizens have access to specially tailored informative material regarding the safety of children and adolescents
Thousands Strike in Athens Over Soaring Living Costs and Stagnant Wages
Inflation, particularly in food prices, has been crushing Greek households
Greece Overhauls Property Valuation System
Greece plans to launch a revamped property value registry in 2025 and overhaul the way objective values are calculated to enhance tax revenue and improve transparency.
Greece’s New Tax Bill Foresees Tax Relief Beyond Big Business
Tax relief measures in Greece are proposed for freelancers, property owners and farmers, along with 'big business'
Unions Call Nationwide Industrial Strike for Wed.
Mass transits are usually affected, especially in the greater Athens-Piraeus area, although bus and metro services are curtailed but not fully halted