Eurobank to urge debtors to join settlement scheme

Eurobank is prepared to send letters to some 35,000 clients with non-performing loans totaling 2 billion euros urging them to take advantage of the law allowing them to settle their debts on favorable terms and save their homes from foreclosure.

These debtors have until the end of September to apply for a settlement. Theodoros Kalantonis, deputy CEO of the bank's Trouble Assets Group, said the bank would accept all applications and cut down on red tape by requiring fewer supporting documents with the application.

The law, said Kalantonis "is a unique chance for those who really want a permanent solution for their loans."

Besides the debt haircut provided by banks, the state will subsidize part of the monthly installment.