SSM asks for auctions of all protected properties

Single Supervisory Mechanism (SSM) officials are increasing pressure on local banks to expand their auctions of debtors’ properties to include main residences valued at less than 100,000 euros.

The representatives of the European Central Bank’s watchdog are in Athens to probe the plans banks have tabled for the reduction of bad loans, and are insisting on the change to the legislative framework protecting debtors’ main residences at the end of 2018, when the Katseli law will cease to apply.

Sources say that the SSM and the International Monetary Fund consider the existing legislation to be particularly loose and are calling for it to be made stricter; they add that any extension to the law introduced by former economy minister Louka Katseli would put the ambitious bad-loan reduction targets at risk, noting that one in four protected owners are strategic defaulters.