YPOIK: 5th progress report on the issue of private debt

The Ministry of Finance, under the coordination of the Special Secretariat for Private Debt Management, presented the 5th Progress Report, which reflects, with figures, the progress of actions related to tackling the issue of private debt.

As YPOIK states in the relevant announcement, the analysis of the data proves that the Government is making every effort to substantially support households and businesses.

Specifically, the actions taken are categorized as follows:

1st Provision of state subsidy on loans to households and businesses

A. Through the program “BRIDGE I” (L.4714 / 2020).
By the end of October, 75,632 loans had been subsidized, corresponding to 50,096 beneficiaries. The total amount of the state subsidy that has been paid to the beneficiaries of the program, until 31.10.2021, amounts to 218.7 million euros.

B. Through the Electronic Platform for the Protection of the Main Residence (Law 4605/2019).

By the end of September, 2,904 beneficiaries were subsidized. The total amount of the state subsidy that has been paid to the beneficiaries of the program until 31.09.2021, amounts to 3.04 million euros.

C. Through the “BRIDGE II” program (Law 4790/2021).
By the end of October, 19,048 loans had been subsidized, corresponding to 10,470 beneficiaries. The total amount of the state subsidy that has been paid to the beneficiaries of the program, until 31.10.2021, amounts to 179.8 million euros.

2nd. Loan arrangements and suspensions

A. Settlements through the out-of-court debt settlement mechanism of companies, freelancers, farmers and general partners (Law 4469/2017).

By the end of September, 2,296 borrowers had successfully settled their debts.

B. Arrangements made by Banks and Loan and Credit Claims Management Companies, bilaterally, with debtors:
i) Loan arrangements:
From July 2019 until the end of September 2021, 563,823 loans (housing, consumer and business) were successfully regulated, totaling 32.02 billion euros.

Typical examples of successful arrangements made by the Loan and Credit Claims Management Companies in the recent period are the following:

– A family of three from Chania, owned a mortgage loan, with a debt amount of 114,000 euros and a loan installment of 790 euros. With the arrangement made, he will be asked to repay a debt of 36,000 euros, with a loan installment of 150 euros, which will gradually increase to 169 euros. In case of compliance with the regulation, she will receive a write-off of 78,000 euros from her loan.

– A two-member family from Kavala, with a consumer loan with collateral and a debt amount of 28,200 euros, paid a loan installment of 278 euros. With the arrangement made, he will be asked to repay a debt of 11,300 euros with a loan installment of 30 euros, which will gradually increase and will reach 50 euros. In case of compliance with the regulation, she will receive a write-off of 16,900 euros from her loan.

– A family of four from Ioannina, with a consumer loan with collateral and a debt amount of 19,800 euros, has received a loan installment, after the arrangement, amounting to 50 euros initially, 54 euros then and 56 euros final installment, with a remaining repayment period of 139 months . In case of compliance with the regulation, she will receive a write-off of 11,900 euros from her loan.

– A general partnership with a professional loan with collateral with a debt amount of 144,550 euros, had a loan installment of 1,254 euros. With the arrangement made, he will be asked to repay a remaining debt of 79,050 euros, with a loan installment of 410 euros. In case of compliance with the regulation, she will receive a write-off of 65,500 euros from her loan.

– A sole proprietorship with a professional loan with collateral with a debt amount of 58,800 euros, had a loan installment of 647 euros. With the arrangement made, he will be asked to repay a remaining loan of 42,200 euros with a loan installment of 182 euros and a remaining repayment period of 392 months. In case of compliance with the regulation, she will receive a write-off of 16,600 euros from her loan.

The success of several regulations is also confirmed by the Consumer Workers’ Union of Greece. According to an example she gave to the public, an elderly retired borrower reached an agreement to settle a due amount of 6,745 euros by writing off expenses and default interest of 5,245 euros, ie 78% of his loan and a lump sum payment of 1,500 euros for repayment.

ii) Loan suspension:
From mid-March 2020 to the end of September 2021, the possibility of suspension of payment on 408,632 loans, amounting to 28.78 billion euros, was granted by Banks and Loan and Credit Claims Management Companies, until the end of September 2021.

You can see the 5th Progress Report on the issue of private debt in detail in the attached file in the right column “Related Files”.