In their statements, Christos Staikouras and Marialena Athanasopoulou mentioned the implementation of the extrajudicial debt settlement mechanism.
Specifically, as Christos Staikouras has announced, loans for more than 20,000 million euros are in advanced stages of the mechanism, of which more than 3,000 million euros have been definitively presented, corresponding to some 6,500 final applications from debtors. In recent weeks, the rate of completion of applications and their final submission has been increasing.
What did Staikouras say about debt settlement?
“Through the extrajudicial debt settlement mechanism, which was activated a year ago, new rules are established in the settlement of debts with the Bank and the State. Citizens now have the possibility to regulate all their debts with the Banks and the State and ensure a comprehensive, automated, sustainable and realistic solution.
In addition, it is possible to carry out bilateral agreements with the State, in the event that the debtor does not maintain a debt with financial entities. The existence of this institutional framework provides a solid foundation, but the solution to the problem requires its immediate and effective implementation. The truth is that the mechanism, a pioneer at the level of the European Union, showed several difficulties in its implementation.
For example, in the collection of data, in the operation of the platform itself, in the process of final presentation of the application, in the speed of evaluation of these by creditors. Today, the situation is much better, the interest of the debtors is increasing and the final presentations show a greater momentum”, said the minister.
“Based on the intense efforts – by all participants – in recent weeks, more than 200 requests are completed per week, with a total average of more than 200 million euros per week owed. To date, 425 requests have been successful. , including 288 from banks and loan administrators and 137 from the State. In these agreements, debt forgiveness of up to 33% has been carried out, while the average duration of the agreements is up to 253 months,” the minister pointed out. .
“However, despite the efforts, 1,200 completed debt settlement requests remain pending with financial institutions, corresponding to more than 1,000 million euros of debt, and we hope they will be completed shortly. In addition, funding agencies approve a relatively small volume of regulatory requests, significantly unevenly among themselves. We see an average approval rate of 46%, which is of concern given that the algorithm, and therefore the settings it automatically produces, was the result of a consultation between the state and creditors, based on the best international standards.” , said Mr. Staikouras also pointed out that: “At the same time, debtors also reject a large percentage of debt settlement proposals, while also showing a delay in the finalization processes of their applications. Therefore, at Despite the real progress that has been made in the last period of time, there is significant room for improvement, mainly on the part of financial entities”
The minister announced that the State is carrying out continuous actions to improve the services offered by the extrajudicial mechanism. “Banks and credit administrators must join the state, fully aware of the new challenges that are presented to all of us. We believe that in the next period of time they will show due responsibility.
We believe that the full implementation of the law could provide a sustainable solution to more than 3,000 borrowers in the next 2-3 months, that is, to settle debts of more than 1,500 million euros. This will be decided -exclusively- by the creditors. Those who must realize that the successful implementation of the mechanism will benefit everyone, the citizens and the State, society and the economy”, said the minister.
At the beginning of the presentation, the minister, on behalf of the Government and the entire Greek society, thanked the firefighters, the Civil Protection officers, the volunteers, the EL.AS officers. and of the entire state apparatus that has been on the front line of the fight against the flames since yesterday, in particularly adverse weather conditions, and is doing everything possible to limit the fire fronts in Attica and other areas of the country. He also expressed my sorrow for the tragic loss of a human being.
source: iefi merida