With three amendments PASOK – Movement for Change offers a framework for protecting the primary residence, improving the position of bank loan guarantors and strengthening the ethical rules of foundations.

“PASOK-Movement for Change Parliamentary Group Legislate Returns to Protect Primary Residence of Weak Borrowers. Introducing Three Amendments, PASOK-Movement for Change Pushes for Update of PASOK Act of 2010, Absolute Protection of Agricultural Land, and Common Framework for 120-Payment Private Debt Management on debts owed to the tax office and the EFKA, with the possibility of “reducing” the debt for those who comply with the regulation,” PASOK said in a related statement, adding that the Parliamentary Group represents a framework for protecting bank loan guarantors that is being dealt with by excessive and unfair prosecutions against them by the banks and funds, c, according to the claims they make against the first debtors.

As noted, the amendment dramatically improves the position of guarantors, since in the event of a loan being transferred to a fund, the guarantor’s liability is limited in accordance with the purchase price of the claim from the fund, the guarantor is given the opportunity to protect himself if the amount can be recovered from the principal, guarantors can repay debts for long periods and avoid the threat of putting them up for auction, provided that offensive conditions restricting the rights of guarantors are not applied.

Finally, the third amendment proposes to strengthen the rules of ethics in the search for an appropriate solution – regulation, increase the efficiency of the out-of-court debt settlement mechanism and impose obligations on credit management companies to provide responsible service to borrowers.

In particular, within the framework proposed by PASOK – Movement for Change:

• The obligation to comply with the Code of Conduct of the Bank of Greece is established for banks and management companies.
• Banks are required to make a settlement offer to the debtor prior to transferring the loan.
• Primary housing cannot be auctioned unless an attempt has been made to pay off the debt.
• Management companies are required to substantiate their offer to the Borrower.
• Sanctions are imposed on the Bank or the Management Company for violation of their obligations under the Code of Ethics.
• The participation of creditors in the process of an out-of-court debt settlement mechanism is established as mandatory.
• You can contact the independent Debt Settlement Committee.
• Special obligations are established for management companies in order to provide the necessary service and information to borrowers.