E-platform for arrears settlement

The Bank of Greece will operate an online platform allowing for the digital submission of all loan settlement applications to banks and servicers, through the Code of Ethics on debt arrangement.

The central bank will attempt via this code to put in order the settlement procedures, mainly by debt management companies that have received a significant portion of the private arrears. This way it will introduced standardized procedures that can will monitor closely, along with examining complaints submitted by debtors.

That should put an end to the problems reported in the efforts to have debts settled between debtors and creditors, leading to imperfect arrangements and delays in the process to find an agreed solution. On several occasions debtors submit proposals based on their repayment ability as their disposable income points to, and not based on the property assets they own because they do not know (and no one explains to them) that the minimum tranche is determined by the value of the properties their loans are secured against.

Sources add that filling a Code of Ethics application is fairly complicated, requiring multiple documents and data from authorities.