Greece concludes agreement with creditors on sale of NPLs

Greece concludes agreement with creditors on sale of NPLs

An agreement between Greece and its lenders will lead to the vast majority of non-performing loans (NPLs) linked to primary residences with a taxable value under 140,000 euros being protected from sale until 2018, Economy Ministry sources have said.

The government said on Saturday that the framework for the sale to distressed debt fund of overdue bank loans had been agreed, a necessary condition for the current bailout review to be concluded.

According to the Economy Ministry, income criteria will not apply to the primary residence-backed NPLs that will be excluded from sale. When coupled with the 140,000-euro “objective value” ceiling, this means that 94 percent of mortgages linked to main homes will be exempt from sale, the government says.

The ministry added that the homeowners whose loans will be sold by banks will not experience any major change. The organizations that buy the loans will be required to use debt collection agencies that are registered in Greece and which have been licensed by the Bank of Greece.