Greece Submits Legislation on Primary Residence Protection



The Greek government submitted on Tuesday a legislative amendment with the new framework for the protection of primary residences, although it has yet come to an agreement with creditors on the terms.

The new framework provides for the payment by protected borrowers of up to 120 percent of the value of their main residence over a maximum of 25 years. The state will contribute to the tranches due depending on the borrowers’ financial condition.

There is a limit on the value of the protected residences of 250,000 euros, but if a corporate loan is involved, the limit will be lowered to 175,000 euros.

In order to appease its creditors, the Greek government has decided to narrow the eligibility criteria, although they may still not be satisfied.

It is possible that creditors could demand a further reduction of the system’s catchment, in order to ensure that strategic defaulters be excluded from protection.