The Greek government has sold to foreign funds mortgages held by civil servants worth more than 5 million euros. According to an exclusive report by daily Eleftheros Typos, the loans were sold to a foreign fund called ‘Grifonas Finance No1 PLC’ based in London.
Borrowers now owe to the foreign fund and not to the state Deposits and Loans Fund (TPD).
With the sale, borrowers lose any right to join loans repayment arrangements that have been facilitated by the so-called Katseli Law. The arrangements allow reduction of installments, grace period, lengthening etc.
The Deposits and Loans Fund would give loans to civil servants depending on their salary level. Maturity of repayment was reaching 30 years, a fixed repayment installment and interest between 4.5% and 6.2%, an average of 4.7%.
Installment repayment was automatically deducted from the salary.
The irony is that civil servants preferred mortgages from the Fund than the banks as they felt ‘a sense of security’, ET notes.
According to the daily, the sale agreement dated back to 17. November 2015 foresaw the assignment and trasnfer of TPD mortgages totaling an amount of 5,299,668.48 euros.
On the same day, the government had reached an agreement with its creditors to ‘protect’ the first residence from auctions.
The mortgages of TPD are performing even though decreases in civil servants wages have limited the available income.
According to media reports from 2016, the total number of loans given by the TPD is 140,000. Public sector union ADEDY had claimed that families of civil servants have to live at even 200 euro per month due to the repayment installments.
At the same time, banks are committed to reach a drastic reduction of non-performing loans worth 40 billion euros in the period 2017-2019, Eleftheros Typos writes.
Meanwhile, auctions of first residence for debts over 400,000 euro to the state, social insurance funds, municipalities and banks are to start after the Notaries Association decided to unfreeze the boycott it had started 6 months ago.
There is no protection of first residence for cases enforced by private suppliers, alimony, etc.
The Greek government has initiated electronic auctions due to protests of civic organizations and movements that often managed to stop such auctions in court rooms.
