Service companies operating in Greece have reacted to criticism that, following the decision of the country’s Supreme Court, they will start auctioning primary residential buildings.
In their statement, they said that their first priority is to find mutually acceptable and sustainable solutions for debt repayment. In particular, for vulnerable households, no one was in danger of losing their main home, as the law provides for a freeze on any lawsuits after they are included in the mediation program, they added.
They argued that the evidence was the fact that by the end of 2022 they had reached bilateral debt settlement agreements worth more than 35 billion euros, of which loans totaling more than 8 billion euros returned to normal debt repayment status last year for a period of three year, restoring access to the banking system for more than 115,000 borrowers.
For the first half of 2023, servicers have set a debt repayment goal of 3.2 billion euros, up 30% compared to the same period in 2022, they said. They also noted that auctions are a last resort after all previous efforts have been exhausted and provided that the borrower refuses to repay their debt.
The servicers’ response comes after a ruling by the Greek Supreme Court on February 9 that servicers based in Greece and managing NPL portfolios in the country have the right to participate in litigation and conduct home auctions under their own brand, and not as representatives of funds. The Greek Supreme Court officially released its ruling on Thursday, making it directly applicable.
PS All this, of course, is fine, but for some reason people do not believe in such promises. Why do you think?
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