The Tsipras government on Tuesday evening finally tabled a draft bill containing the legal framework for protection of primary residences (from creditors) in the country, a post-bailout “prior action” whose delay is considered as the main reason holding up a 975-million-euro tranche to Athens.
The cut-off point for eligible borrowers is a generous 250,000 euros (in value) for mortgages and 175,000 euros for business loans with primary residences put up as a guarantee/collateral.
The draft amendment foresees that the sum of remaining loan capital, including calculated asset-bearing interest, if applicable, cannot exceed 130,000 euros per creditor at the date when an application for protection is filed.
In terms of all-important income criteria for eligible borrowers, the annual family income of an unmarried applicant over the previous year, counting back from the date when the application is filed, cannot exceeds 12,500 euros; with another 8,500 euros added for a spouse and 5,000 euros for each dependent, up to three. If the total debt for which the application is made exceeds 20,000 euros, the applicant’s property assets – as well as the spouse’s and the dependents – along with owned means of transportation (vehicles, boats, motorcycle etc) by the couple, cannot exceed 80,000 in value.
Deposits and other financial products, as well as precious metals, coins, bars etc. possessed by the applicant and his/her dependents cannot exceed 15,000 euros in value at the time of the application’s filing.
