The government stops the auctions concerning the main residence up until the end of 2015, by obligating borrowers to pay the installments to the banks, whereas at the same time it prepares a plan about the settlement of ‘red loans’ and business loans as well.

More specifically, and according to the Minister of Economy, Infrastructure, Shipping and Tourism Yorgos Stathakis, the following days the government intends to bring a new bill before the Parliament which will forbid the banks to auction the main residence of borrowers who cannot pay their mortgages.

The settlement promoted by the government is to be forwarded to the European Central Bank by tomorrow on Friday, so that it can state its opinion; later on, the bill in question is to be brought before the parliament.

More specifically, and according to the settlement plan that the Ministry of Economy promotes, there will be no auctions of the borrowers’ main residence, only if they meet the following requirements cumulatively:

1. The objective value of the main residence does not exceed the amount of 300,000 – 350,000 euros.

2. The total value of the immovable property reaches up to 500,000 euros.

3. The bank deposits and the value of movable properties do not exceed the amount of 30,000 euros.

4. Those that have zero income don’t have to pay any installments to the banks.

5. Those that have an income (family) ranging from 1 to 25,000 euros have to pay 10% of their income as an installment.

6. Those that have an income (family) ranging from 25.001 to 50.000 euros have to pay 20% of their income as an installment.

The bill will be protecting the main residence from auctions up until 31 December 2015.

Source: Ethnos