The Private Debt Council convened and decided upon the reasonable monthly living expenses which will come into effect in 2015 and will assist in the negotiations between banks and customers regarding debt settlement.
According to the council’s decision – which includes the Ministers of Finances and Labor, the Governor of the Bank of Greece and the president of the Greek Bank Association– these reasonable expenses will act as a reference point, in order to determine whether a debtor can cover monthly payments. The hope is to avoid appealing to the courts and facilitate negotiations.
The expenses change according to the marriage and family status of the taxpayer; the reasonable monthly living expenses of single taxpayer is 537 euros, for a couple 906 euros, for an adult with one child 758 euros, for a couple with one child 1,206 euros and for a couple with two children 1,347 euros.
The creditors will now have to take into consideration the debtor’s living expenses, in conjunction with the loan, assets and other variables, in coming to an agreement for payment that suits the debtor’s profile. The debtor reserves the right to appeal to a court of law, should he be unable to service the loan settlement.
