Gradually until the end of June, a new five-intervention package unfolds for the private debt, with a view to giving more doses, «thaw» frozen bank accounts and strengthen the protection of the first residence. At the same time, time counts in reverse for the Real Estate Acquisition and Releasing Agency, as the relevant competition process enters its final phase.
The new framework comes at a time when the outstanding debts of households and businesses to IRS, EPCAs, banks and services exceed EUR 240 billion. The first line is the exceptional regulation of 72 doses, the extension of the extrajudicial mechanism, the release of confiscated accounts, the most targeted protection of the main residence and the activation of the new property body.
1. Exceptional 72 dose setting
By the end of June the new extraordinary arrangement for the new 72-dose regulation to the State is expected to be adopted; and EXPAS. Through special application to myAADE and CEAO debtors who had outstanding debts until 31 December 2023 will be included as long as these remain unchanged until 21 April 2026. The debt created after 1 January 2024 should also be repaid or settled. The minimum monthly instalment will be 30 euros and debt will be charged at a fixed rate of 5.84%.
2. Extrajudicial for smaller debts
The extrajudicial mechanism also opens up for debts of EUR 5,000 or more. Through this procedure, debts can be repaid in up to 240 monthly instalments, at an interest rate of 3%, while in some cases provision is made for «haircut» the debt.
3. Unfreezing frozen accounts
The confiscated bank accounts will be released at 25% of the total debt, provided that the remaining amount is settled or repaid. The measure gives direct liquidity to citizens and businesses, but will only apply once. If new outstanding debts are created, new release will be possible only after full repayment.
4. Targeted protection of first residence
Major changes also come to the protection of the main residence through the extrajudicial. The new framework will allow regulation only for the first residence, without taking into account the entire property, as is the case today. The arrangement will be based on the commercial value of the property and the actual ability to repay the debtor, clearing the way for larger «Haircuts» and lower doses.
5. Real Estate Institution
The Real Estate Acquisition and Releasing Institution passes to the final line. On Friday, June 5, the file of the one binding tender submitted to the Ministry of Finance is opened to show whether it is an individual investor or a consortium. The Agency is expected to enter into operation by the end of autumn, and until then the interim programme of support and suspension of auctions will remain active.
Kostis Planjos
