Commission approves Greek plan to protect primary residence

The European Commission said on Thursday it has accepted Greece's plan to protect the primary residencies of debtors who cannot repay their mortgage loan.

"The Commission concluded that, with respect to individuals, including those performing an economic activity, the measure does not involve any state aid," it said in a press release.

In its assessment, the Commission said that while the banks that issued the loans will have an indirect advantage because it will increases the amount of repayment these banks are likely to receive from the non-performing loans, the aid will not create "undue distortions of competition" because it is limited to what is necessary to ensure that borrowers do not lose the house in which they live.

It also said that since all banks in Greece will participate in the scheme, it is non-discriminatory.

"The Commission has...