The government and the heads of Greece’s four systemic banks on Thursday agreed that a new legal framework to protect primary residences in the country from creditors – as well as new bankruptcy legislation for households – will exist for one year after replacing the current regime.
The so-called “Katselis law” protecting primary residences of eligible homeowners, mostly from banks foreclosing on non-performing mortgage loans, expires at the end of this month.
According to reports, the government side – represented by ministers Alekos Flambouraris and Dimitris Liakos – considers that it can solve the issues raised by European creditors over the draft framework within days.
The one-year duration of any new framework was, reports state, a demand by creditors.
Conversely, the initial highlights of the draft framework remain, such as an annual income cap per eligible family at 36,000 euros; an objective property value not to exceed 250,000 euros, and a cap of 130,000 euros in remaining debt.
Government sources said the tabling of a relevant draft law will come within days.
