“We have converted the out-of-court mechanism into a tool for the primary residence”, stated Kyriakos Pierrakakis, referring to the new regulation regarding the loans of the Katseli Law passed yesterday.
As he noted, the out-of-court settlement provides for up to 240 installments and in certain cases up to 420 installments.
Speaking to MEGA, the minister noted that there was substantial consensus on the bill regarding private debt, since, as he said, only 22% of the articles were voted down.
Regarding the regulation that “waives” nearly all interest in the judicial loan settlements under Law 3869/2010, Mr. Pierrakakis emphasized that the government went beyond the decision of the Supreme Court, by applying the provision retroactively to all borrowers under the Katselis Law.
According to him, the total cost of the measure amounts to 700 million euros, of which 500 million relates to universal implementation and 200 million for retroactive coverage, with banks covering 100 million euros. He also emphasized that 70% of those who defaulted on previous repayment plans had not made a single payment.
The minister characterized the private debt primarily a social issue rather than a systemic problem, noting that a “middle ground” in interventions for the benefit of society, without populism but with targeted legislation. “It’s easy to appeal to populism. It’s hard to perform surgical intervention.”
Regarding accuracy, she stated that the government’s goal is to boost disposable income for citizens, while regarding the energy he emphasized that this is a European problem that requires a joint response from all 27 member states.
