The government’s intention to fully implement the Supreme Court\u2019s ruling on loans under the Katseli Law, was announced yesterday by Mr. Pierrakakis.<\/b><\/p>\n
Real solutions to everyday problems, without forcing citizens to get bogged down in endless legal marathons, do exist, as was evident from Kyriakos Pierrakakis\u2019s announcement regarding the legislative regulation concerning loans under the Katseli Law. <\/p>\n
What the Minister of National Economy and Finance were not merely a formal announcement, but a move that aims to heal a deep wound for thousands of households, making the decision of the Supreme Court<\/b> immediately enforceable for everyone, without any caveats or delays. <\/p>\n
The relevant initiative is being submitted immediately to Parliament with the aim of being passed without delay<\/b>, proving that government intervention was ultimately the only way to avoid a new wave of bureaucracy and legal uncertainty.<\/p>\n
The recent decision by the Plenary Session of the Supreme Court left many loopholes open, allowing for different interpretations by banks and servicers<\/b>, with the result that borrowers to face the paradox of having interest calculated on the entire outstanding balance of their debt.<\/p>\n
Thus, if the government did not intervene now, everyone directly affected would have to go back to court, spending time and money simply to claim what is self-evident<\/b>.<\/p>\n
In contrast to what has happened until now for those who had managed to protect their primary residence through Law 3869\/2010<\/b>, the new regulation provides that interest will stop accruing on the total \u201cmountain\u201d of debt and is limited exclusively to the monthly installment set by the court for the period between two payments.<\/b><\/p>\n
In reality, the installment is converted into a fixed principal repayment with virtually no interest. This is a shocking difference<\/b>, since under the old, unfair system, they would have paid 731 euros every month\u2014434 euros of which was interest\u2014resulting in them handing over nearly 75,000 euros in interest to the banks over the course of 25 years. <\/p>\n
Now, his monthly payment has been reduced to 483 euros, since the interest has dropped to just 1 euro per month. This means 248 euros more in his pocket each month and a total interest burden that does not exceed 433 euros for the entire duration of the loan.<\/p>\n
At the same time, the regulation also introduces an act of moral and economic justice<\/b>, namely retroactivity, helping consistent borrowers avoid losing their money, since any excess amounts paid are recalculated and automatically converted into paid-off principal.<\/p>\n
In the example mentioned above, if someone paid the old installment amount for 30 months, they would have overpaid by 7,440 euros, which will be deducted from the final installments of their loan, allowing them to pay off the loan much sooner.<\/p>\n
Of course, any fair arrangement must have clear limits so as not to undermine legal stability. Thus, the retroactive recalculation does not apply to loans that have already been definitively closed or to borrowers who have been declared in default because they stopped making payments for an extended period of time.<\/b><\/p>\n
As for the financial cost to the \u201cHercules\u201d state guarantee program, the reduction in interest\u2014estimated at 500 \u03b5\u03ba\u03b1\u03c4. \u03b5\u03c5\u03c1\u03ce over a twenty-year period\u2014 plus 200 million euros from the retroactive recognition of the amounts, will be apportioned based on who received the funds in the past. <\/p>\n
In other words, if the amounts were received while the loan was still with the bank, the bank bears the burden. If they had already been transferred to \u201cHercules\u201d securitizations, the cost falls there. With this clever accounting distinction, borrowers are protected without threatening the stability of the financial system. <\/p>\n
Its three main pillars are relief for debtors, institutional safeguards for the market, and immediate social protection, Kyriakos Pierrakakis\u2019 omnibus bill, which is currently under debate in Parliament, aims to address the core of the country\u2019s social and economic life.<\/b><\/p>\n
At the heart of the provisions lies the landmark measure to address private debt, with a 28% increase in the threshold for the unseizable account <\/b>. At the same time, a significant opportunity is opening up for 1.5 million borrowers and debtors, as an extension has been granted until the end of the year for debt settlement through the out-of-court settlement mechanism, offering generous discounts of up to 75% on surcharges and interest on debts owed to the tax authorities.<\/p>\n
On the market and tax administration front, the bill introduces the much-discussed Tax Rulings<\/b>, a radical innovation by Greek standards, which, through the Binding Tax Ruling, allows taxpayers to request and receive in advance, and within 150 days, an official and legally binding interpretation of the law, which reduces bureaucracy and offers absolute investment security.<\/p>\n","protected":false},"excerpt":{"rendered":"
Mr. … announced yesterday the government\u2019s intention to fully implement the Supreme Court\u2019s ruling on loans under the Katseli Law.<\/p>\n","protected":false},"author":1,"featured_media":12500,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-12499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"acf":[],"_links":{"self":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts\/12499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12499"}],"version-history":[{"count":0,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts\/12499\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/media\/12500"}],"wp:attachment":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}