Banks to access info of Katseli law applicants

The end to banking secrecy as of September 15 will mark the start of the major clearing of borrower applications for protection from lenders according to the so-called Katseli law.

Banks will then be permitted access to the deposit data of all those who have applied for protection under the provisions of the law introduced by former economy minister Louka Katseli, while the rules also provide for the retroactive recalculation of interest for those whose application is rejected by courts.

Domestic banks expect that, under the threat of having their deposits revealed, strategic defaulters as well as those who have filed applications without deserving protection – just to freeze their debt till their case is heard – will now have every reason to reach a compromise with their lender. Notably, the number of applications submitted stands at some 150,000.

Banks have already received some requests from those seeking a solution, which so far amount to some 15 percent of the cases enjoying the benefits of the Katseli law. Since the first contacts made by debtors at the start of the summer, when the changes were announced, some 40 percent of defaulters have appeared at banks to consider the lenders’ proposals for an arrangement.