Measures against auctions

The Finance Ministry seeks to raise a barrier to the imperfect arrangements of loans carried out by servicers, the inefficiency of which threatens to blow up the business plans of securizations.

This will be done through an omnibus bill that introduces measures to increase the arrangements through the out-of-court mechanism, to protect vulnerable households but also to provide the possibility of refinancing bad loans from credit companies that will be created by funds.

The measures are aimed at preventing a new wave of main residence auctions for vulnerable households and boosting regulation, the course of which is derailing the goals set out to be achieved by the servicers managing the loans of the “Hercules” state scheme.

Kathimerini understands that already some of the major servicers are facing the threat of penalties due to not meeting the targets they have pledged to achieve for the “Hercules” securitizations, and despite the fact that this does not mean the discount of guarantee given by the state, this scenario cannot be ruled out if collection after the arrangement of these loans does not improve.