Greek banks are considering restructuring non performing loans (NPLs), as the alternative option of selling them off to funds is estimated to generate large losses. Sources say that funds interested in acquiring the ‘bad loans’ on the Greek banks’ balance sheets are offering only 25% of their nominal value, a prices judged too low on the part of Greek bankers. This has lead domestic bankers to examine the possibility of making targeted hair cuts’ on NPLs, especially home loans, based on specific criteria and requirements. However, a key factor for this policy to move forward is the establishment of a favourable legal framework to protect bankers opting for this choice. Some basic criteria for loan hair cuts to be enacted include the ability of the loan holders to prove they are incapable to service their payments and not to possess large property. The choice of what loans will be eligible to receive a hair cut will also depend on the family status of the holder based on the Code of Conduct, in order to avoid undermining the trust towards banks of reliable and consistent loan holders. Old consumer loans deemed in permanent deferment for two years will be sold off to funds. Meanwhile, other measures being adopted in conjunction with loan hair cuts are property auctions that are expected to start immediately, as 2,000 cases are already in line to be sold of to the highest bidders.