Greece’s four systemic banks are contacting about 400,00 clients to settle their debt from consumer loans and credit cards, before proceeding with the sale of those loans to various investment funds.
The banks – Alpha Bank, Eurobank, National Bank of Greece, and Piraeus Bank are launching an informational campaign to inform the public.
The arrangement applies to older loans as well as those issued during the economic crisis.
Within the framework of the regulations of the country’s Central Bank, the Bank of Greece, the four systemic banks are offering debtors exceptionally favourable terms in many cases, including a heft write-down in many cases.
In the letters sent by Alpha Bank and Eurobank, debtors were offered haircuts of up to 95 percent.
Still, most clients did not respond to the call, presumably due to their inability to service even a favourably refinanced loan, so their debts were sold to investment funds.
The banks offer debtors a two-month period within which they must come forward to make an arrangement.
Once the non-performing loans are sold to funds, there is no possibility of a favourable settlement, as the full amount of the loan must be paid.