Finance minister calls on banks to delay foreclosures

The Finance Ministry is considering possible actions to tackle non-performing loans and is examining a set of measures aiming to address the issue, Finance Minister Makis Keravnos said in a statement on Friday, calling banks and credit acquiring companies to refrain from foreclosures of primary residences held by vulnerable borrowers.

Keravnos’ comments came following a rejection of a bill over a three-month suspension of foreclosures in the Parliament yesterday.

“In the context of a comprehensive and effective reform concerning the management of NPLs, the Finance Ministry is considering possible actions and is examining a set of proposals aiming at addressing the issue,” Keravnos said.

He also recalled that with a view to protecting vulnerable borrowers both the Finance Ministry and the EU Directorate-General for Competition are in “constant consultation and are working towards the implementation of the mortgage-to-rent as soon as possible.”

Furthermore, Keravnos called on the banks and credit acquiring companies not to proceed with foreclosures of primary residences with a value up to €350,000 which collateralize NPLs held by vulnerable borrowers to allow for the “necessary time for the conclusion of the public dialogue” over the above measures and the implementation of the mortgage-to-rent scheme.