Loan servicing

One in every three taxpayers (about 2.1 million) who declares an income of up to 5,000 euros per annum does not have access to bank loans for house purchase, as by definition they lack the ability to service a mortgage.

The government is preparing interventions in the housing credit sector for this fall, with National Economy & Finance Minister Kostis Hatzidakis vowing that the government will continue to support vulnerable households. 

The "big fish," however, he said, "are not vulnerable households but those who pretend to be poor." 

The government is planning to offer a subsidy for borrowers with housing loans secured against their main residence if it concerns individuals and entrepreneurs hurt by the coronavirus crisis, as an alternative to the main residence protection status which currently applies.

Credit servicing firms (CSFs) licensed by Greece's central bank were servicing a total of 23.5 billion euros ($26.3 billion) of non-performing loans at the end of December, it said on Monday.

PQH, the liquidator for bad banks in Greece, has signed a deal to sell a 1 billion euro ($1.11 billion) portfolio of unsecured impaired loans to loan servicer Intrum Hellas, it said on Friday.

The deal was agreed at a price of 71.1 million euros, meaning PQH will receive 7 percent of the outstanding principal.

Greek lender Piraeus Bank's partnership with Swedish loan servicer Intrum to manage bad loans will create the biggest independent loan servicer in the Greek market, executives at both firms said on Friday.

The European Commission has approved Greece's home protection scheme, which supports householders who cannot meet mortgage payments and are at risk of losing their primary residence.
The Commission said on Thursday the scheme did not violate state aid rules.

"A step toward the right direction to reduce the moral hazard in the country," is how Intrum Justitia Group Chief Executive Mikael Ericson describes the agreement between the Greek government and the country's banks concerning the amendment of the so-called Katseli law for the protection of debtors.