Will be able to have a single picture of all debts of individuals and legal entities Publicbut also financial institutions through a new independent rating body, as provided for by the draft law Ministry of Finance which was recently released for public comment.

The Office, which will be a public body, will collect and group information about overdue obligations and payment behavior for all public sector entities to produce a credit rating for individuals and legal entities.

The Credit Rating Authority will share information and scores with other credit rating agencies such as Tiresias. Thus, it is assumed that banks will be able to better determine their financial policy, knowing the total debt of each borrower. At the same time, every citizen or business will be able to use a credit rating certificate issued by an independent body to negotiate a loan agreement or even to settle any debt with the state.

According to the MoF, the main challenge is to eliminate asymmetric information about the creditworthiness of debtors, which, as mentioned in the analysis of the consequences of the proposed regulation, leads to undesirable results, for example:

• That debtors are borrowing more money than they can normally repay, or that creditors are only willing to lend a portion of the money that the debtor can consistently repay.

• As long as debtors have access to more information than creditors, they may enter into loan agreements with no intention of servicing them.

• That lenders generally do not approve loan applications from borrowers who actually have sufficient credit in the absence of sufficient evidence of their indebtedness to the government, and are likely to approve applications from debtors who are not creditworthy to the government but are more actively seeking credit .

Addressing the problem of asymmetric information aims to ensure that reliable credit ratings are available to all types of individuals for use by agencies, financial institutions and other stakeholders in the context of reducing non-performing loans (NPE) and NPLs. government agencies and others, as well as to prevent the phenomenon of over-indebtedness.

At the same time, the same draft law proposes the establishment and operation of a central credit registry, which is part of the 4th component of the National Recovery and Resilience Plan “Private Investment and Economic Transformation” in order to strengthen the financial sector and capital markets. This is the first national personal data archiving system to be held by the Bank of Greece.