Housing credit interventions in the pipeline

The government is preparing interventions in the housing credit sector for this fall, with National Economy & Finance Minister Kostis Hatzidakis vowing that the government will continue to support vulnerable households. 

The “big fish,” however, he said, “are not vulnerable households but those who pretend to be poor.” 

“It would be a challenge to defend them at a time when thousands of debtors, despite the difficulties, are servicing their obligations,” he added. 

The main intervention being planned is a new transparency framework for servicers, who have most bad loans in their hands. Based on this framework, they will be obliged to inform the debtors of the amount of their debt, the interest rate charged and the installments. In the event that they do not do so, the services will face penalties. 

Incentives for joining the extrajudicial mechanism will also be improved, as many applications are currently being rejected. Hatzidakis told Parliament that there was a historic high of applications in June, as well as a new monthly record of arrangements. He added that continuous improvements are being made to the mechanism to make it even more efficient and fair. 

The government also intends to make it possible to grant housing loans from non-banking institutions, from credit companies, as is the case abroad.