From February 1, a platform to support vulnerable borrowers opens

From February 1, 2023 opens special platformcreated by banks in the context of supporting informed vulnerable borrowers to installment subsidies overdue mortgage or small business loans with the provision of a first place of residence.

In particular, according to the joint statement of the four systemically important banks, borrowers will be able to submit their applications to the platform (HERE) to obtain appropriate support, with the first step being to issue certificate vulnerable borrowers through the information system of the Special Private Debt Secretariat.

As a reminder, the plan provides for a subsidy of 50% of the interest rate increase (with the increase calculation date of 06/30/2022) for a period of 12 months, with the corresponding amounts expected to start being credited to the beneficiaries’ accounts in April. All costs to support vulnerable borrowers will be covered under separate corporate social responsibility measures of financial institutions, at the expense of equal contributions from four systemically important banks.

At the same time, the Greek banking system uses the mechanism out-of-court settlement retail debt, for which Greece’s four systemically important banks report that approvals for the loans they hold in their portfolios have increased significantly. The approval rate for the entire banking system is currently at 55%, up 10 percentage points from September 2022, confirming the trend towards ever-increasing approvals. Since the launch of the platform, systemic banks have approved about 2,800 borrower applications for a total debt exceeding 116 million euros.

In addition, based on the individual policy of each bank in this matter, banks continue to implement bilateral loan agreements, ensuring the quality of their portfolios and, above all, offering sustainable solutions for their clients. “During 2022 alone, in response to the need to support households and businesses, the country’s systemic banks entered into bilateral agreements with 86,350 borrowers to receive loans worth more than 5 billion euros, of which 2.5 billion euros relate to housing loans secured by real estate” , noted in the announcement.

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