Loans collection agencies created to force Greek debt repayments

Collection companies will be formulated to collect debt loan repayments as one of the prior actions that will immediately go into effect in an omnibus bill that was submitted in Greek Parliament on Sunday. The new bill will be voted on during the plenary session on December 15.

The new multibill includes the creation of loan administration companies that will overlook non-performing loans (NPL), so-called “red loans”. Tax collection companies will be created at the start of 2016 and are to be monitored by the Bank of Greece.

Their creation includes tight licensing deadlines. These will be given from the Bank of Greece within a 20-day period.

These money collection agencies will need to be baased in Greece or in the EU with branches in Greece. Furthermore, other demands include the identification of shareholders and advisers, the organizational structure and the business plan that should include the way in which the NPLs are to be handled. The companies need to have a minimum share capital of 100,000 euros.

These groups will be given authorization to collect loans that have been delayed for more than 90 days. A prerequisite for the loans transfer to the companies are for the holder of the loan to have rejected a call from the bank to transfer the loans within 12 months.

Loans that are excluded from the transfer to these agencies include:

– loans with a mortgaged main home

– loans of small and medium-sized enterprizes, SMEs, as these are termed from EU legislation.

– loans with a guarantee from the Greek public sector.

Read the bill (in Greek):

The bill

The report of the general state accounts auditors

The reasoned opinion

The chart of abolished clauses

The special report

The report of consequences

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