Legislation on bad loans is the result of negotiations, Economy Min Stathakis says

“The legislation on bad loans is the result of negotiations,” Economy Minister Giorgos Stathakis said in statements to ANT1 TV on Tuesday (27/09/2016).

“We discussed all possible tools and the possibility for loan holders to purchase their loan at the same price as the funds, but the creditors rejected the proposal,” he added.

Stathakis noted that all European markets have a secondary market for loans and stressed that strict terms have been set. In order for a company to purchase a bad loan, it needs to be located in Europe and not in a tax heaven, he stated, adding that the management companies need to have their offices in Greece.

According to the minister, 80-85 pct of housing loans – with specific objective threshold value – will not be sold until 2018, consumer loans are not mortgage backed and cannot be converted into mortgage backed ones nor to change the terms of the contract.

The minister noted that the legislation on bad loans has been voted and added that the citizens’ service centres (KEP) for bad loans will be ready by December.

Regarding the transfer of public utilities to the new privatisation super fund, he said that it does not translate into their privatisation. “The transfer of companies to the Hellenic Republic Asset Development Fund (TAIPED) translates into their privatisation, while their transfer to the new super fund means 30-year exploitation.”

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