In the activities and agreements, loans in the amount of 3.2 billion euros are directed to problem loan management companies for the first half of 2023 with the goal of increasing agreements by more than 30% compared to the corresponding period last year. This is stated in the statement Association of Management Companies (EEDADP)emphasizing the contribution of companies “to the financial consolidation of households, the competitive development of enterprises and entire market sectors, and to the recovery of the Greek economy, enabling thousands of households and businesses to pay off their debts and restore access to the banking system through realistic and coherent mechanisms, the vast majority of which includes significant debt relief and an effective system to protect vulnerable borrowers.”

Based on the previous year’s accounting data, by the end of 2022, management companies had restored more than 700,000 borrowers, individuals and legal entities, to a healthy financial cycle by providing loans worth more than 35 billion euros. In particular, according to the accounting records of the previous year:

• In total, by the end of 2022, credit management companies have returned more than 700,000 borrowers, individuals and businesses, to a healthy economic cycle, providing loans worth more than 35 billion euros, supporting competitive growth and jobs throughout Greece.

• They have proposed mechanisms and tailored solutions, bringing the total managed portfolio of loans and receivables under management to over EUR 27 billion, corresponding to more than 590,000 borrowers.

By the end of 2022, they have returned more than 700,000 borrowers to a healthy financial cycle.

• They have returned more than €8 billion in regulated loans to the banking system over the past three years, bringing more than 115,000 borrowers back to normal banking.

• They recovered over 83% through bilateral and consensus decisions and only 17% through auctions (2020-2022 data).

• Using opportunities and activating out-of-court debt settlement mechanisms, in the interests of all parties, the approval of applications averages 70% with an upward trend. In particular, in cases of debts up to 200,000 euros, which primarily concern individuals, the approval rate is over 75%.

As they note in their statement, they are offering businesses a real second chance for sustainable growth through a restructuring that does not run out of profitability (EBITDA) to repay loans, but allows it to be used as working capital. They also provide advisory services for the inclusion of these enterprises in all available national and European subsidy and financing programs (NSRF, Recovery Fund, etc.). For vulnerable borrowers, credit management companies have specific policies that apply not only to those who have joined the protection regime, but also to other sensitive social groups, such as those with health problems, the elderly and the unemployed.