Foreclosure

The Independent Authority for Public Revenue confirmed on Friday in a circular that property auctions for debts to the state will officially start on May 1.

The authority has decided that starting prices will be based on the commercial value of the asset to be auctioned, and that they will be determined by independent surveyors.

In a letter to Citizens' Protection Minister Nikos Toskas, the union of Hellenic Police officers (POASY) on Wednesday underlined its opposition to a government decision to boost security for notarial firms involved in controversial property foreclosures.

The large number of property auctions currently being planned will undermine the stability - or growth in certain cases - seen recently in the real estate market, sector experts warn.

European Central Bank President Mario Draghi on Wednesday said that while Greek authorities have made "welcome" progress in recent weeks to speed up foreclosures and help banks reduce their huge pile of nonperforming loans, more needs to be done "to ensure full geographical coverage across Greece."

In a letter to Citizens' Protection Minister Nikos Toskas, the union of Hellenic Police officers (POASY) on Wednesday underlined its opposition to a government decision to boost security for notarial firms involved in controversial property foreclosures.

Property auctions will rise to an annual rate of 40,000 as of 2019, according to the European Commission's compliance report, while the planning for this year provides for 10,000 foreclosures.

Greek authorities might be obliged to bring forward plans to lower the taxfree threshold on income to 2019 from 2020 if the country's creditors deem that the primary surplus target of 3.5 percent of gross domestic product for 2019 is beyond reach.

The potential demand is mentioned in a draft compliance report by the European Commission made public on Monday by Bloomberg.

The Euro Working Group gave the green light on Friday for the completion of the third bailout review in principle, but property auctions are still causing concern as they are seen as crucial to determining the course of Greek banks and whether or not a new recapitalization will be required.

Greece's parliament on Monday passed a swathe of reforms demanded by international lenders in exchange for fresh bailout funds, a success for the government but a blow to thousands of people protesting outside./ Reuters

Online auctions related to overdue debts to the state will begin on May 1, according to an amendment tabled in Parliament on Friday that puts an end to conventional auctions from now on.