The program aims at Greek citizens who fall in the category of being victims of the humanitarian crisis, based on certain criteria. The write-off applies to credit card debts and consumer loans and it cannot exceed 20,000 euros.
If a debtor owes less than 20,000, his debt is completely written off. If he or she owes more than that, 20,000 is subtracted from the total debt. For example, if someone owes 30,000 euros in consumer loans or credit cards, he has to repay Piraeus Bank 10,000 euros.
In house loans, the debt haircut only applies to interest imposed for as long as the loan remains frozen, which will apply up to the end of this year.
The government criteria for qualifying for the write-off are specific: An individual must have a yearly income of less than 2,400 euros and a married couple should have 3,600 euros or less and 600 euros are added for each child and 1,200 euros for each dependent adult. In addition, the total taxable value of their home should be 90,00 euros or less.
The humanitarian crisis program was recently voted in parliament and it is estimated that about 180,000 households and 150,000 individuals would qualify and about 50,000 of them would benefit from the Piraeus Bank scheme.
In an announcement by Piraeus Bank it is stated that the decision was taken in order to help debtors who were stricken by the economic crisis and help the Greek economy and Greek society in general and that it signals an effort for a new beginning for Greece.