A new draft law presented to the cabinet by National Economy & Finance Minister Kostis Hatzidakis on Wednesday focuses on transparency in relations between borrowers and funds, protecting truly vulnerable citizens, and supporting competition in the banking system.
The bill is named “Loans: Transparency, competition, protecting the vulnerable – Incorporation of EU Directive 2021/2167” and focuses on five directions. Specifically, it
– introduces obligations by servicers of transparency, notifications, and respect of borrowers’ rights;
– extends protection for those who are provably vulnerable;
– upgrades and improves regulations of the out-of-court mechanism on loan repayment plans;
– introduces regulations strengthening competition, such as loan disbursement by non-banks; and it
– expands transactions through the system of direct payments (IRIS).
The draft law also includes regulations that improve the operation of the Agency for the Acquisition and Rerental of Properties; simplify and speed up the procedures of the Code of Bankruptcy; set up a Registry of Observing Private Debt to ensure trends are noted early so the state’s response is improved in case problems arise in the future; reduce taxes of capital accumulation and stock exchange transactions; and directly publicize the names of companies which transgress the law as observed by the Bank of Greece.
Hatzidakis
“By the transactions introduced during the [government’s] first term, the banking system was largely relieved of the problem of non-performing loans (‘red loans’). In addition, the law to settle loan repayment schedules and to provide a second chance was legislated, becoming a true reform in Greece, establishing permanent tools to manage repayments, as is the out-of-court mechanism,” Hatzidakis said.
The next step, with this new draft law, is to manage the outstanding private debt that continues to exist in the economy, setting obstacles to a greater development that Greece can achieve, the minister added.
SOURCE; ANA-MPA
