Thousands of taxpayers are rushing to the country’s local courts in order to apply for protection against home auctions under the beneficial ‘Katseli law’, which is abolished as of the 1st of January. In Athens alone 6,250 applications have been filed. Although the legislative framework will change, legal experts note that the new law that will come into effect in 2016 can protect many taxpayers with debts.
Recent and upcoming legislative changes mean that as of the 15th of February 2015 foreign funds will be able to buy SME, housing and consumer loans, with thousands of taxpayers fearing they may loose their homes. Government officials argue that their intention is to carry on offering protection to taxpayers, however they are quick to admit that it will be difficult to do so.
In order to facilitate taxpayers and alleviate the stress on the courts, the Ministry of Finances issued a circular allowing a 47-day extension for the submission of required documents. In order to receive protection under the Katseli law though, they must submit an application by the end of 2015. The Bar Association of Greece however has warned that the circular does not address the problems at hand and urged for further legislative initiatives.