Reports: Govt, banks reach one major compromise on effort in renew protection for primary residences from creditors

Monday, 11 February 2019 22:00
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The Tsipras government and Greece's four systemic banks have reportedly reached at least one major compromise on the pressing issue of renewing legal protection of primary residences from creditors, with the cut-off being a value of 120,000 euros.

The government had wanted a framework protecting primary residences valued at 200,000 euros or less, whereas banks had pressed for 100,000 euros of less, based on the value assigned by the tax bureau in terms of objective tax criteria.

One concession, on the part of banks, according to other sources, is to extend primary residence protection to properties used as guarantees for business and consumer loans that are not being serviced.

 Both sides also emphasized the need for the new framework to avoid increasing risks for Greece's thrice bailed-out systemic banks.

The development reportedly emanates from a meeting between a handful of top ministers, including Deputy PM Yannis Dragasakis, with the heads of all four lenders - National Bank of Greece, Eurobank, Alpha Bank and Piraeus Bank - at the Maximos Mansion on Sunday evening.

The same reports said negotiations will continue this week over remaining details, less than three weeks before the current protection framework expires. Both sides reportedly agreed not to renew the current framework but to ratify a new law in Parliament before the end of February.  

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