Greeks’ Primary Residence Protection Extended for Two Months

Former Finance Minister Louka Katseli, who drafted the “Katseli Law”

The Greek government and the country’s biggest banks agreed to extend by two months legislation which protects the primary residence of debtors in Athens on Friday.

Prime Minister Alexis Tsipras met with board members of the Hellenic Bank Association at Maximos Mansion and agreed to the measure.

The “Katseli Law”, as it is popularly known, came into effect at the outset of the economic crisis. The measure, which called for a suspension of the seizure of the primary residence of indebted Greeks, was introduced by former economic minister Louka Katseli.

The measure was due to expire on December 31 of this year.

In a press release after the meeting, the prime minister’s office said the two sides agreed to extend the law until the end of February, 2019, in order to give time for replacement legislation to be drafted. New bills, which will protect homeowners’ main residences and provide bankruptcy protection to individuals, will be drawn up shortly.

Speaking after the meeting, Hellenic Bank Association Chairman Nikos Karamouzis declared  that “Both sides want to find solutions that protect society and the primary residence, but mainly ensure the robustness and prospects of the banking system. We are on the right path.”