YPOIK: The 6th Progress Report on the issue of private debt

The Ministry of Finance, under the coordination of the Special Secretariat for Private Debt Management, presents the 6th Progress Report, which sets out, with figures, the progress of actions related to tackling the issue of private debt.

The analysis of the data shows that the Government is making every effort to substantially support households and businesses, according to the Ministry of Finance. As he points out, the actions taken are categorized as follows:

Providing state subsidy on loans to households and businesses affected by the coronavirus pandemic

We support households and businesses with a state subsidy of up to 90% of the loan installment. Subsidy, which until the end of February 2022, reaches a total of 557.67 million euros.

Specifically:
A. Through him program “BRIDGE I” (L.4714 / 2020)

In February 2022, 12,670 loans were subsidized with 1.4 million euros, which correspond to 7,685 beneficiaries. The total amount of the state subsidy that has been paid to the beneficiaries of the program, until 28.2.2022, amounts to 250.1 million euros.

B. Through him program “BRIDGE II” (Law 4790/2021)

In February 2022, 13,454 loans were subsidized with 22 million euros, which correspond to 7,416 beneficiaries. The total amount of the state subsidy that has been paid to the beneficiaries of the program, until 28.2.2022, amounts to 302.9 million euros.

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

In February 2022, 2,984 beneficiaries were subsidized. The total amount of the state subsidy that has been paid to the beneficiaries of the program until 28.2.2022, amounts to 4.37 million euros.

Loan arrangements and suspensions

A. Settlements through the new out-of-court debt settlement mechanism for natural and legal persons (L.4738 / 2020)

By the end of February, 137 borrowers had received a settlement proposal to successfully settle their debts if they accepted it. The arrangements through the out-of-court mechanism are generated by an automated algorithm, which takes into account the value of the property and the disposable income of both the debtor and his co-debtors – guarantors. Thus, the regulatory proposals it produces are socially just, long-term and sustainable for debtors and their families.

Typical examples of successful settlement proposals that have been sent to debtors for acceptance in recent times are the following:

A three-member family from Attica, with an annual family income of 16,400 euros and a property of 91,700 euros, owned an up-to-date mortgage with real security, amounting to a debt of 124,500 euros. With the proposed settlement solution, he will be asked to repay a remaining loan of 76,100 euros, with a loan installment of 213 euros, which will gradually increase to 324 euros and a remaining repayment period of 420 months. In case of compliance with the regulation, she will receive a write-off of 48,400 euros, ie 38.8% of her loan.

A family of three from Attica, with an annual family income of 16,500 euros and a fortune of 80,400 euros, held an overdue mortgage loan with a security of 104,700 euros. With the proposed settlement solution, he will be asked to repay a remaining loan of 59,600 euros, with a loan installment of 166 euros, which will gradually increase to 253 euros and a remaining repayment period of 420 months. In case of compliance with the regulation, she will receive a write-off of 45,100 euros, ie 43% of her loan.

A two-member family from Ilia, with an annual family income of 14,400 euros and a fortune of 210,300 euros, held an overdue consumer loan of 41,900 euros. With the proposed settlement solution, he will be asked to repay the total amount of 41,900 euros, with a loan installment of 265 euros and a remaining repayment period of 240 months.

A two-member family from Thessaloniki, with an annual family income of 19,600 euros and a fortune of 257,500 euros, held an overdue consumer loan of 23,000 euros. With the proposed settlement solution, he will be asked to repay the total amount of 23,000 euros, with a loan installment of 150 euros and a remaining repayment period of 228 months.

A family of three from Attica, with an annual family income of 64,500 euros and a fortune of 65,500 euros respectively, held an overdue consumer loan of 11,400 euros. With the proposed settlement solution, he will be asked to repay the total amount of 11,400 euros, with a loan installment of 540 euros and a remaining repayment period of 22 months.

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 January 2022, 632,998 loans (housing, consumer and business) were successfully settled, totaling 35.85 billion euros.

ii) Loan payment suspensions:
From mid-March 2020 to the end of January 2022, 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.

The Ministry of Finance will continue, with consistency and social justice, to assist in the effort to resolve the problem of private debt, having as allies, and we are working in this direction, all stakeholders, concludes the announcement of the Ministry of Finance.