18.2.13
Over the next few days the Ministry of Growth will unveil a reform measure to support indebted household. According to the new memorandum, the government must revise the “Katselis law” regarding indebted households, in order to preserve bank solvency and credit discipline, to avoid using fiscal sources to protect private borrowers and to focus on lenders who really need it, to minimize the moral danger.
It is stressed hat authorities must avoid initiatives that “undermine the payment culture in Greece”. For that purpose, the ministry of Growth designed the reform that has already been submitted to the Bank of Greece and the troika; the reform provides the suspension of paying housing loan installments for two years and only paying interest at a low rate of 1.5%
In order to apply for this measure, the borrower’s and guarantor’s income must not exceed 25,000 euros annual, the borrower must have had his wages reduced at least 35% over the past two years and that the house, for which the loan was secured, must be a primary residence with a value of up to 180,000 euros.
