The Ministry of National Economy and Finance, in collaboration with the Bank of Greece, seems to be closer to completing the plan for regulating Swiss franc loans.
“A solution will be found with an emphasis on the out-of-court mechanism. We aim to present it soon. And all this will be done in collaboration with the Bank of Greece, because the ‘Hercules’ scheme for bad loans and the stability of the banking system must always be ensured. But I think we are in a position to move forward,” Minister of National Economy and Finance Kyriakos Pierrakakis, said in an interview with SKAI TV.
4.5 billion euros in loans
The loans in Swiss francs are estimated at approximately 4.5 billion euros and in several cases have been securitized, that is, they have “passed” into the “Hercules” program. The solution that the ministry is seeking is to alleviate vulnerable borrowers in a way that does not create a problem for “Hercules”, by activating the State’s guarantees. In order to resolve the issue of thousands of borrowers in Swiss francs, a number of other factors are also taken into account, such as the exchange rate with the euro, loan repayments and those that have been converted to the common European currency.
The role of the out-of-court mechanism is expected to be decisive, Pierrakakis said. According to sources, it will be used mainly by those who do not service their loans. In this way, they will be able to ensure a fixed installment and a “haircut” of the increases.
“Additional measures will also be taken for borrowers who are up to date with their payments. What is being considered is giving them the option to convert their loan into euros at an exchange rate relative to the Swiss franc, which would entail a form of ‘haircut’ on the debt. A key factor in determining the exchange rate will be the borrower’s income and assets.”
