Under pressure from creditors, Greek gov't restricts borrower protection

Just two days after submitting legislation to Parliament outlining a new framework for the protection of overindebted borrowers from foreclosures, the government on Thursday submitted an amendment watering down that protection after coming under pressure from the country's international creditors. 

The changes foresee stricter eligibility for protection in the case of corporate loans secured against the borrower's primary residence and stricter assessment procedures for properties' commercial value.

The ceiling for corporate loans to be eligible for protection under the new scheme has dropped to 100,000 euros from 130,000 in terms of the outstanding balance. 

The concessionary amendment was submitted to the House after a European official emphasized the reservations of Greece's creditors about the original framework and warned that no agreement would mean no...