The government would like to see the thousands of closed properties managed by servicers reopen and begin to return to the market, considering that they will constitute an important source of supply reinforcement.

The issue was discussed last May 29th  among others, by Minister of National Economy and Finance Kyriakos Pierrakakis and Bank of Greece Governor Yannis Stournaras, in a meeting at the central bank, while in the afternoon a meeting was held on the same issue at the Ministry of National Economy, under Pierrakakis, with the participation of the servicers and Bank of Greece Deputy Governor Christina Papaconstantinou.

The goal is to regulate the loans corresponding to these properties, so that they can be put back on the market not be auctioned off. A systemic solution is being sought in this direction, a source has told Kathimerini. However, the same source acknowledged that the solution will not be easy, given that it is a problem that has accumulated over the years.

In any case, the government has put housing at the center of its policy, as this has emerged as a top problem. To this end, it is attempting to bring as many as possible of the approximately 800,000 closed properties onto the market, according to the calculations of representatives of the real estate market.

For individuals who keep their properties closed, the government will move with a carrot-and-stick logic, providing incentives for owners to open their closed properties and establishing disincentives for those who insist on keeping them closed.

At their meeting, Pierrakakis and Stournaras agreed that the Savings and Investment Union, which is promoted by the European Commission, is positive and they support it.

Pierrakakis added that the barriers between European economies must be removed. “As Mario Draghi has mentioned,” the minister explained, “the barriers that exist in the service sector are equivalent to corresponding tariffs of around 110%.”

Original Story: Ekathimerini | Author: Eirini Chrysolora
Edition: Prime Yield
Image by Thomas G. from Pixabay