Euclid Tsakalotos: Amendment on primary residence protection a step toward normality

The amendment on primary residence protection was “a step toward a return to normality,” Finance Minister Euclid Tsakalotos said in parliament on Thursday.

He said this shared the cost between the state, banks and borrowers while defending the decision to lower the allowable amount of business loans in arrears, noting that this would not affect as many people but make it possible to get approval from the SSM and the European Central Bank.

He explained that the problem for the ECB and SSM was that any strategy for reducing non-performing loans entailed risk, with the ECB and SSM asking that an “ bad” scenario should also be considered and that risk should not be high.

He said the draft legislation will have two pillars, one being the old Katseli law for primary residence protection and the second being the new approach to help banks reduce NPLs.

Source ANA-MPA
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