Dendias presents ambitious “split and freeze” plans for bad loans
The outgoing Minister of Growth Nikos Dendias presented an ambitious plan currently being drafted in order to address the…
The outgoing Minister of Growth Nikos Dendias presented an ambitious plan currently being drafted in order to address the major problem regarding bad loans.
At a press conference held on Monday, Mr. Dendias presented his “split and freeze” plan, where the loan is split in two parts: one which will be serviced as normal (or possibly with more favorable terms) and another which will be frozen for a set amount of time.
While no specific details have been set, preliminary thoughts suggest the frozen part of the loan could amount to 30% for 15 years. Strict income and asset criteria would also be put into place, primarily to protect primary residences.
The general director of a major bank commented that Mr. Dendias’ proposal may be implemented under certain conditions and stressed that such a plan would only apply for lenders who are truly facing financial difficulties. The bank official further added that an across-the-board solution would be too big for the system to handle.