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Troika Wants Greek Homes Repossessed

Greek HouseGreece’s international lenders are pressuring the coalition government led by Prime Minister and New Democracy Conservative leader Antonis Samaras again to lift a ban prohibiting banks from confiscating homes worth more than 200,000 euros ($260,000) of Greeks who can’t afford to pay their mortgages because of daunting austerity measures.

Some banks have refused to restructure mortgages despite big pay cuts, tax hikes and slashed pensions imposed by the government, that also includes the PASOK Socialists, on the orders of the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) whose allegiance is to big banks and investors.

The idea of lifting the ban, which is set to expire at the end of the year, has riled even some government Members of Parliament who are told how to vote by Samaras and PASOK leader Evangelos Venizelos, and has set off ire among other parties, particularly the major opposition Coalition of the Radical Left (SYRIZA).

With banks suffering a more than 27 percent default rate on loans because austerity measures have left many Greeks unable to pay, they are also demanding they be allowed to repossess homes to help them recapitalize their coffers. Ironically, New Democracy and PASOK together owe banks more than 250 million euros ($332.5 million) but aren’t being pressured to pay at the same time they are in charge of giving the banks 50 billion euros ($66.5 billion) in an injection of funds, some 200 times what they owe.

The government is considering a partial lift on the ban, said Deputy Minister of Growth Thanasis Skordas, who suggested that allowing the auctioning of primary residences based on social criteria, in order to protect vulnerable groups, would be allowed. It was not reported whether any politicians are in danger of losing their homes as they have largely escaped the effects of austerity.

It was estimated that a revision on the bank would result in my residences with a high objective value to be take by bank but result in a drop in value between 12% and 21%. Home values and prices have plummeted precipitously over the last three years.

Many MPs from both parties supporting the government reacted against this proposal and spoke of extending the ban until the end of 2014, in order to protect borrowers.

In their reports on the Greek economy, both the EU and IMF have requested that aggressive action be taken to deal with bad loans but didn’t mention that PASOK and New Democracy would have to pay what they owe. The goal is to set up a plan that will protect households that have been consistent in their payments, but face problems due to financial crisis, while discouraging borrowers who chose not to pay even if they couldn’t. There were no details on how the difference could be determined.

By fall, the Greek authorities must have a report on the policies of each credit institution for dealing with bad loans. These reports will be evaluated by the Troika, the Bank of Greece and the bank themselves, so that by October they can make specific proposals to improve practices.

Initial reports about a partial lifting of the ban set off a firestorm of criticism from consumer organizations who demanded MP’s reject it. The General Consumer Federation ΙΝΚΑ has already addressed the Parliamentary Standing Committee on Production and Trade, arguing that the primary residence is often the sole residence of borrowers and that thousands of people could be thrown onto the streets.

The federation also claims that the Ministry of Growth has not calculated the social repercussions of allowing the auctioning of primary residences and the social explosion that such a legislative initiative might cause. The organization has also requested that the Ministry estimate the increase in the number of the homeless, as a result of such an act.

Consumer union EKPOIZO also demanded that the ban be extended for a further three years and requested the development of a network to deal with bad loans by giving impartial financial advice and ensuring a decent living of standard, according to European standards.

The government has not acted on a bill it promised to pay giving debt relief to households who could prove they could not afford to pay loans, credit cards and mortgages because of loss of income and tax burden demanded by the state.

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  • Concerned

    God told Greeks that they can borrow money but they don’t have to pay it back. The rest of the world calls that stealing

  • Joker

    Greeks do not buy homes or pay back debts..Only foreigners do..
    And Greeks who live and work abroad are sheep that have a moral duty to pay to the Greek government all taxes and penalties but not if you are a local..And send money back to their family so they can buy real estate and luxury goods..
    You are entitled to this privlidge..Its an absolute joke…In Greece,,

  • Nik

    Typical Greek Way!

  • worldarts

    Then ask PASOK & ND why they stole 250 million Euros in bogus loans and never paid a cent back yet to their Banker cronies?
    Is that Leadreship? ———–Give us a break, pal!

  • NAZIHUNTER1

    NONE of the money by the TROIKA MAFIA have gone to Greeks but International Hedge Funds and INternational Banks. The Looting of Southern Europe has continued.
    The PUPPET Government representing TROIKA MAFIA are their to loot whatever they can because their master Banksters have stolen and Gambled Trillions from the Godfathers at the Federal Reserve ( A Private Institution)

  • NAZIHUNTER1

    Your name FITS YOU PERFECTLY. A JOKER WHO is insecure and NOT FUNNY. You must know about sheep. You are from the Herd to… BAAA BAAA Ha Ha you little Fool. Buzz off.

  • Deep_Sea_Diver

    I believe, that if this is agreed by parliament, to make thousands of families homeless with winter coming on, it could be the alarm bell that finally wakes the Greek people from their slumber, that’s when the fireworks start. We have all seen the uprising’s in the rest of the world when the public say, “ENOUGH IS ENOUGH” & Greeks have taken more than enough

  • Graywolf

    It takes little , to no research to see that the greeks are sheep , betrayed by what they believed to be a good government . They share part of the blame for being stupid and gullible , but thats a given everywhere around the world . Did you expect the people that did the stealing , to just roll over ? Of course they will shift the blame to the people , of course they will try to divide and conquer as always . If you believe otherwise you are either really stupid , or on payroll to help shift the blame. So , which is it ?

  • thes8niki

    does one think this is good for the bank balance sheets, with their current 27% default rates on their npl’s? all this will do is further decimate home prices (10-20 further) that then decreases the value of these assets on the bank balance sheets, which will cause the banks to use more of the bank bailout fund (75% already used), accelerating the time frame for the next inevitable bailout. lose lose all around. and most importantly, why is the troika meddling in the affairs of private (quasi i guess actually) institutions. let them decide on their own.

  • NIKI

    GREEK LOAN IS A BUBBLE OF INTERNATIONAL BANKERS IMF …WE DONT LIKE THE EUROPE AND THE EURO .LET THEM GO TO THE HELL

  • NIKI

    ALL THE GREEKS WE SHOULD THROW THE TROIKA OUT BECAUSE .ARE DEVILS AND TROIKA WANTS TO THROW THE GREEKS OUT AND TO TAKE THE PETROL AND OUR WEALTH FROM US FREE AND TO BRING THE PAKISTAN AFGANISTAN SLAVES TO WORK FOR THEM IN OUR COUNTRY.

  • NIKI

    ALL THE GREEKS WE SHOULD REMEMBER THE 300 SPARTANS AT THE THERMOPILES BATTLE AND TO DO THE SAME.HERE IS GREECE.

  • xakter

    Do what? Die?

  • Aetos

    It seems that the road to recovery and self rule is leading more and more to a REVOLUTION.

    Arrest the current politicians and partners, on suspicion of national treason and
    conspiring with the enemy against the interests of the people and the state,
    due to missuse of public assests and moneys.

    When are the Rich and Politicians and Puclic Servants responsible for the mess going to be prosecuted and brought to justice?

  • tictac

    “…. to lift a ban prohibiting banks from confiscating homes worth more than
    200,000 euros ($260,000) of Greeks who can’t afford to pay their
    mortgages because of daunting austerity measures.”

    What about homes worth less than 200.000 €?

  • Alex

    What you are arguing is treaon (and undemocratic) We have elections not violence to elect leaders.