Despite confidence on Friday of an immenent agreement between the Greek government and its creditors, the two sides are yet reach a compromise on non-performing loans and primary residence auctions. Talks between the two sides are set to continue at 2pm on Monday, while the PM may also call a meeting of the Government Council for Economic Policy.
Sources from the Ministry of Finances noted that an agreement has been reached on the changes of bank managements and the role of the Financial Stability Fund. A senior Finance Ministry official reported that while here is some convergence, the two sides disagree on the income and asset criteria that will be used to determine which categories of indebted homeowners will be covered. Both sides agree on protection for the most vulnerable homeowners (about 25%), with those on average or high income (about 33% of debtors) having to prove their financial difficulties.
The Greek government wants to offer protection to 58% to 60% of homeowners and also wants to protect households which have consistently fulfilled their obligations but are now facing problems. This of course necessitates an intention to cooperate. On the other hand, the government wants to introduce measures against those who take advantage of the beneficial conditions to avoid making payments. There are also thoughts of setting a cap on the number of auctions a bank can carry out in a year.
