In an ERTnews interview, Dimitris Markopoulos, Greece's deputy minister of national economy and finance, outlined proposed borrower protections under the government's private debt management bill. The measures would restrict upfront payment demands, require free access to loan information and impose penalties on funds and loan servicers for breaches. He also addressed the government's decision to withdraw a disputed enforcement provision. The bill would cap upfront payments in direct bilateral debt settlements at 15% of the debt, compared with demands that could previously reach 50%. Loan servicers would have to provide borrowers with detailed information on the progress and status of their loans at no charge. Fines for violations would reach EUR 500,000. The government decided to withdraw Article 23 to prevent controversy over the provision from obstructing the remaining borrower protections. Markopoulos clarified that its provisions on enforceability concerned new debt settlement agreements, rather than automatically making original loan contracts enforceable instruments. He said the provision would neither automatically trigger an auction nor remove borrowers' rights.
Greece's Ministry of National Economy and Finance outlines proposed 15% debt settlement payment cap and fines up to EUR 500,000
In an ERTnews interview, Greece's Deputy Minister of National Economy and Finance Dimitris Markopoulos reviewed a private debt management bill proposing a 15% cap on upfront payments in direct bilateral settlements and fines of up to EUR 500,000 for breaches by funds and loan servicers. Servicers would also have to provide detailed loan information free of charge. The government decided to withdraw a disputed provision concerning the enforceability of new debt settlement agreements to avoid obstructing the remaining borrower protections.