Greece to subsidize mortgage loans up to 95 percent for families

Greece’s government will start subsidizing mortgage loans with amounts that will reach up to 95% of the outstanding debt. The measure comes a few weeks after Greek banks started to offer generous debt cuts of up to 95% to debtors of non-performing consumer loans providing they can pay back in six installments.

The Greek government will begin implementing a measure to subsidize mortgage loans from January 1, 2019, covering up to 95 pct of the loan for families with an annual income of up to 8,500 euros, Alternate Economy and Development Minister Stelios Pitsiorlas announced on Friday.

Speaking in Parliament, Pitsiorlas said the measure will cover 50 percent of mortgage loans, reaching up to 95 pct of the loan for families with an annual income of up to 8,500 euros.

“This measure will mean that loans will be properly paid and that there will be no need for the guarantor to pay,” the minister said, adding that the country must deal the problem of non-performing loans in its totality.

He said that an omnibus bill voted in Parliament in June offered some clear improvements, expanding protection for business loans along with family loans.

Protection here and protection there, it is another government effort to save the banks from their bad loans. I wonder for how long we keep paying for the other people’s loans and the banks’ “generosities” to grand loans as if there was no tomorrow.

Since September, Greek banks try to retrieve consumers debts before they sell them to the funds. They offer a cut up to 95%  to the remaining amount, if debtors pay back a small part of the money they owe to the banks.

Some banks have generous offers like paying the remaining debt in six installments and write off of the charges interests.

According to media, such debts were up to 1.5 billion euros in one bank alone.

PS there are times I wish I had a bank loan and not loans -OK, bailouts –  from the EU and the IMF….