Debt settlement

The moment of truth has arrived for foreclosures of private homes that are mortgaged and changes to the scheme for debt settlement in 100 installments.

Failure to secure the 2-billion-euro tranche benchmarked for Greece at Monday’s Eurogroup, means its back to meetings with representatives of four international creditors from the European Commission, European Central Bank, European Stability Mechanism and the International Monetary Fund.

Thousands of Greek households are to be negatively affected when the new tax reforms are implemented by the government, with the first rush of panic already felt by taxpayers as well as the relevant services of the General Secretariat of Public Revenue. From Tuesday until October 30, it will be raining changes as demands for money to line state coffers grow.

The countdown is on for reforms to the plan for debt settlement in 100 instalments for 1.1 million people. The main changes include a reduction in the number of instalments and an increase to the interest rates.

German Vice Chancellor Sigmar Gabriel said on Tuesday the consequences of a Greek bankruptcy would be "gigantic" for Europe, but hoped a deal could be reached to avoid such a scenario.

Talks between Greece and its international creditors are making progress but both sides still need to make further efforts to clinch a deal, EU Economics Commissioner Pierre Moscovici said on Tuesday.

A memorandum on launching a debt settlement program was signed on Monday.

It is aimed at "reducing insolvency, encouraging lending and promoting the bankruptcy legal framework and agreed financial restructuring."

By Evgenia Tzortzi

Piraeus Bank has decided to write off debts of up to 20,000 euros stemming from consumer loans and credit cards for its clients who qualify to benefit from the government?s measures against the humanitarian crisis. The bank will also freeze debts from mortgages for the same category of citizens, it announced yesterday.

By Prokopis Hatzinikolaou

The Finance Ministry has decided to put the deadline for applications to participate in the payment program for debts to the state back by one month even before the scheme has been activated.

By Prokopis Hatzinikolaou

Alternate Finance Minister Nadia Valavani on Friday tabled an amendment in Parliament to a part of the bill on the humanitarian crisis regarding the lump sum repayment of expired debts.