24042019Headline:

Legislative measures for non-performing loans to be introduced in February

Legislative measures addressing the issue of non-performing loans will be introduced “within February,” Economy and Development Minister Yiannis Dragasakis said on Wednesday in Parliament.

“Whatever the regulation is, it must firstly take into account the social repercussions… such as the issue of [protecting] primary residences. It should also take into account the fiscal implications and impact in terms of the capital adequacy of banks. This is the framework for a rational debate on the issue of “bad” loans,” Dragasakis said.

The minister said that the reduction of bad loans is a “broader social goal” and required solutions that “can’t be found in a manual”, adding that there was “no automatic pilot on how a bank can get rid of these loans,” and that any measure adopted will have to be thoroughly studied and assessed.