Effort to bridge gap on debtor protection

The distance between the government and banks on the changes to the so-called Katseli law means their meeting on Monday at the prime minister's office will be very important, while Athens is expected to forward its proposal on the protection of debtors' primary residences to the country's creditors on the same day.

The latest information confirms that the proposal remains maximalist on the degree of protection provided, as in view of the elections the government wants to expand its protection catchment for borrowers' main residences. However, the banks reject that, believing that this would damage their capital adequacy and reverse plans for loan securitization.

The government proposal provides for the protection of all main residences worth up to 150,000 euros and under certain conditions up to 250,000 euros, as well as expanding to people with commercial or...