Gov't to give reprieve for distressed mortgages
The Greek government says it will partially lift protection for distressed mortgages in the crisis-hit country to protect banks from a rising number of unpaid loans.
The Development Ministry said yesterday it will extend through 2014 a freeze on repossession, but only for primary properties valued at up to €200,000 (US$275,000) and households with an annual net income of under €35,000.
But blanket protection on main household properties, a measure essentially in effect since the start of the financial crisis four years ago, will end on January 1, the ministry said.
The Bank of Greece on Tuesday said the general amount of non-performing loans had risen to 29.3 in June, from 24.5 per cent a year earlier. The new regulations are to be voted by parliament Saturday.