The Minister of Finance explained the significant backlog of banks and management companies in the implementation of the extrajudicial mechanism Christos Staikourasurging representatives of the two branches to, in his words, “be on top” and improve the approval rates of submitted applications.

Speaking yesterday in Parliament in the context of the Economics Committee, Mr. Staikouras dismissed complaints about the government’s backtracking on the amendment and auctions and whether management companies are legalized for enforcement acts, arguing that the government has never introduced a corresponding amendment, despite the fact that the amendment was a proposal from representatives of financial institutions.

Mr. Staikouras called on all financial institutions to join forces with the state to deal effectively and sustainably with the private debt problem, using the out-of-court mechanism as a key tool, which aims to satisfy 1,093 debt settlement applications totaling 1 billion. .euro by the beginning of next year.

According to the data provided by Mr. Staikouras, more than 60,000 debtors have registered on the platform so far. Of these, 32,000, i.e. more than half, have submitted their financial data, from which emerge total debts of 19 billion euros, an amount that, according to the Minister of Finance, could potentially be repaid in the near future through an extrajudicial mechanism. Already 9,000 debtors with a total debt of 5 billion euros have finally applied for regulation, and this amount has increased by 2 billion euros in the last three months.

The debt settlement that has already been carried out is 1498 for a total amount of 250 million euros, of which 70% were carried out during the last quarter on very favorable terms for the debtors, which, according to Mr. Staikouras, indicates the intensification of efforts recently. From them:

So far, only 1,498 agreements have been implemented for a total amount of 250 million euros.

• Banks and management companies completed 697 transactions for a total of EUR 157 million.

• The state has implemented 801 activities for a total of 93 million euros.

In the above schemes, in some cases, debts were written off up to 50%, and their duration was up to 35 years.

Judging by the same data, creditors, i.e. banks and asset managers continue to turn down a large number of requests for debt repayment, while the percentage of approval of requests still varies significantly depending on the financial institution. In particular, they account for between 11% and 84% of the total number of requests for debt repayment, demonstrating, according to Mr. Staikouras, that “lenders do not have a common strategy and priorities in managing private debt through this mechanism.” . So far, creditors have rejected requests for repayment of debt totaling 600 million euros. The Minister of Finance mentioned initiatives to improve the quality of services offered by the out-of-court mechanism, including reducing the difference between the debt repayment rates of financial institutions and reference rates by 75 basis points from 3.25% to 2.5%. for secured loans and by 150 basis points, from 4.5% to 3% for unsecured loans, respectively.

Actions also include recording the reasons for the rejection of proposed measures by borrowers so that there are improvement actions and the introduction of the “myegdixlive” digital platform to provide faster, more direct and more efficient digital support and service for citizens, on the procedure for applying to an out-of-court mechanism.