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Troika Lenders Demand Confiscation Of Homes In "Bastion Of Stability" Greece

Tyler Durden's picture




 

As the Greek Prime Minister, Antonis Samaras, visits the US to promote his nation as a "bastion of stability" in the eastern Mediterranean, things appear to be going from worst to worster in his nation. While 65% youth unemployment is a large and scary enough data point, and Greeks are in open revolt against tax collectors, the uproar over Troika's current demands to lift a ban prohibiting banks from confiscating homes is growing. From the people to the politicians, anger is brewing over the lifting of the ban but the banks (already mired in 27% default rates) are behind the decision to help recapitalize themselves (and are refusing to restructure loans). However, given that Greece has already used 75% of its bank bailout fund and that repossessing and auctioning homes (potentially based on 'social criteria') could cut home prices 12 to 21%... not exactly going to help bank balance sheets; and it would seem Greece will need more caves.

 

Via Greek Reporter,

Greece’s international lenders are pressuring the coalition government led by Prime Minister and New Democracy Conservative leader Antonis Samaras again to lift a ban prohibiting banks from confiscating homes worth more than 200,000 euros ($260,000) of Greeks who can’t afford to pay their mortgages because of daunting austerity measures.

 

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The idea of lifting the ban, which is set to expire at the end of the year, has riled even some government Members of Parliament who are told how to vote by Samaras and PASOK leader Evangelos Venizelos, and has set off ire among other parties

 

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With banks suffering a more than 27 percent default rate on loans because austerity measures have left many Greeks unable to pay, they are also demanding they be allowed to repossess homes to help them recapitalize their coffers

 

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The government is considering a partial lift on the ban, said Deputy Minister of Growth Thanasis Skordas, who suggested that allowing the auctioning of primary residences based on social criteria, in order to protect vulnerable groups, would be allowed

 

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It was estimated that a revision on the bank would result in my residences with a high objective value to be take by bank but result in a drop in value between 12% and 21%

 

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Consumer union EKPOIZO also demanded that the ban be extended for a further three years and requested the development of a network to deal with bad loans

 

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The government has not acted on a bill it promised to pay giving debt relief to households who could prove they could not afford to pay loans, credit cards and mortgages because of loss of income and tax burden demanded by the state.

 

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