More than 2.27 million debtors of bad loans in Greece

A full range of mechanisms is used by the Hellenic Loan Servicers Association (EEDADP) in order to manage debts totaling more than 90 billion euros involving 2,271,548 debtors.

Of these debts, 80% no longer burden the balance sheets of Greek banks.

EEDADP pointed out in a statement that the management of loans is based on the principles of transparency and efficiency, under the supervision of the Bank of Greece.

Information platforms

The information platforms provide borrowers with information about data concerning their debt, such as the balance of the debt (per loan agreement), the number, the amount and the estimated payment time of the next installment of their loan.

At the same time, the borrower’s contact information with the company that manages his debt is updated immediately and easily in a particularly simple way.

The existence of up-to-date contact information is a necessary condition for the communication with the debtors in the effort to find mutually acceptable solutions and submit proposals for the settlement of debts.

Bilateral adjustment capabilities

Cooperative debtors now have the opportunity to fully assess the data concerning them as a whole and to proceed to the next steps for the settlement of their debts, either by applying to the respective company for bilateral settlement, or by utilizing the available alternative channels. Specifically:

• There is the platform of the out-of-court debt settlement mechanism through which all debts are settled, either to individuals or to the state and its agencies. Regarding vulnerable households, the settlement resulting from the algorithm of the mechanism, without any other intervention, is being automatically accepted.

• There is the interim state support program for the primary residence, through which vulnerable households can ensure that they stay in the property that meets their housing needs, in accordance with the provisions of Law 4916/2022, and at the same time receive a state subsidy for a significant part of the rent for the same period.

• It is recalled that the main and most effective tool for the settlement of debts is the bilateral arrangements in which the company proceeds in cooperation with the debtors, on an individual basis, taking into account the income and the objective personal, family and social conditions for each case separately, but also the value of the assets of all involved.

Since 2022, ECHRs have settled bilaterally a total of 15.2 billion euros in loans. For the first quarter of 2024, total loan arrangements reached 1.2 billion euros.