Greece’s creditors are insisting on a drastic reduction of the maximum property and income criteria for the protection of borrowers’ homes, or the exemption of corporate debts, before approving the Greek plan, sources have told Kathimerini.
The lenders are asking that the ceiling on bank deposits a debtor may have to be eligible for primary residence protection be dropped to €5,000, from the limit of €65,000 that the original draft agreement provided for. Similarly they want to see the property value limit reduced to €100,000 from the original €260,000.
The creditors’ demands were the main reason for the disagreement at Monday’s Eurogroup that led to the postponement of the disbursement of almost €1 billion to Athens, and to Finance Minister Euclid Tskalotos asking for more time so that the decisions can be made at the government level.
The objective of the creditors is to see the number of borrowers that qualify for the new protection system shrink further, as they consider the figure of 180,000 debtors that would be protected under Athens’s proposal and bank estimates to be particularly high. In the creditors’ view, the government will not only protect the financially weak but also some strategic defaulters, thereby strengthening the culture against repayment.
In Brussels and Frankfurt they believe you cannot have someone with € 30,000 in the bank – let alone €65,000 euros – claiming to be unable to pay a monthly tranche of €200 or €300 to spare his or her primary residence from foreclosure. That is why they are seeking a drop in the limit of bank deposits to €5,000, while the government has only consented to halving the limit of the original proposal – i.e. bringing it down to around € 32,500.
Original Story:Ekathimerini-com | Evgenia Tzorti
Photo: FreeImages.Com/Pierre Amerlynck