Gov't plans settlement of bad mortgage loans

16:14 3/11/2014 - Πηγή: NewsBomb

The regulation regarding the settlement of bad mortgage loans, estimated at approximately 27 billion euros, is at an advanced stage,…

The minister also presented the details of the settlement on bad business loans, which are estimated at 40 billion euros.

The settlement of the overdue mortgage loans provides for a 30 percent reduction in the value of the property

on which the original loan had been granted and the separation of the loan into two parts. The main part of the loan will be repaid to the bank and the remainder will be transferred, remunerated or not, to at least a decade or 15 years later and then it will be evaluated again after a renegotiation based on the value of the property at that time.

The minister said he has already informed the troika and there is a discussion with two of the four systemic banks, one of which seems to agree. He also stressed that the protection of primary residence is taken for granted.