Greek government extended the current ban on selling NPLs to funds until May 15

The Greek government extended on Monday the current ban on selling non-performing loans (NPLs) to funds until May 15 through an amendment tabled by the economy ministry to parliament.

According to the amendment, banks are not allowed to sell NPLs which mortgage the main residence, consumer loans and those of small and medium-sized businesses. The move was taken to allow the government more time to formulate the relevant legislation which is currently being debated with Greece’s lenders.

The amendment also extends for two more months (until June 30) a relevant law passed by the previous government until a new framework is prepared to reform the debts of small businesses and professionals to the banks.