Greek Banks Plan for “in the red” Loans

mortgage_loans_390_2011Greek banks have reached a complex plan in order to deal with loans “in the red.”

According to the newspaper “Ethnos,” Greek banks will move based on their own criteria. This means that they will only take into consideration the real economic situation of a household and not the assessed value of the first residence.

“Borrowers who have a real problem, have nothing to be afraid of,” reported the bankers to Ethnos.

As far as the unemployed and other vulnerable social groups are concerned, the banks have planned the “freezing” of monthly installments for a semester. After that period, they will review the economic situation of the borrowers in order to protect both the citizens and banks from serious damage.

The basic settings include: “freezing” of monthly installments for vulnerable social groups, prepaid installment that corresponds to the current value of the house, longer duration of the loans, reduction of amortization installments for 2 or 3 years and setting of overdue debts with concessional loans.