Servicers operating in Greece on Thursday responded to criticism alleging that following a ruling by the country's Supreme Court they would begin auctioning of primary residences, saying that their first priority was to find mutually accepted and sustainable solutions for the repayment of outstanding debt.
Particularly for vulnerable households, no one was threatened with losing their primary house since the law imposes a freezing on any legal action after their inclusion in the intermediary programme.
In an announcement, servicers said the proof lay in the fact that by the end of 2022 they had reached bilateral debt-settlement agreements worth more than 35 billion euros, of which loans worth over 8 billion euros in total have returned to debt normal repayment status in the last three years, restoring access to the banking system to over 115,000 borrowers.
For the first half of 2023, servicers have set a goal of settling debt worth 3.2 billion euros, up 30% compared with the same period in 2022, they said. They also noted that auctions were the last resort of action after all previous efforts have been exhausted and on condition that a borrower refused to repay their debt.
The servicers' response relates to a ruling by Greece's Supreme Court on February 9 that servicers based in Greece - who are managing portfolios of non-performing loans in the country - have the right to participate in court actions and carry residential auctions under their brand name and not as representatives of funds. The Greek Supreme Court formally published its decision on Thursday, thus making the decision directly applicable.
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