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Gov’t submits “primary residence protection” law without agreement with creditors

The Greek government submitted on Tuesday night a legislative amendment with the new framework for the protection of debtor’s primary residence. For the first time, corporate loans are included in the law.

The upper limit of the value of the protected primary residence is 250,000 euros. This affects private loans like mortgage, consumption loans, debts for credit cards.

For corporate loans the value of primary residence decreases to 175,000 euros.

The height of debt is not over 130,000 euro for each debtor.

For the first time, corporate loans are included in the framework, if the debtor’s primary residence serves as collateral.

There are income criteria for debtors wanting to benefit from the framework that replaces the former Katseli Law.

Beneficiaries of the new framework will pay 120% of the commercial value of the protected primary residence over a period of 25 years, with a 3-month euribor interest of +2%.

It is worth noting that the government proceeded to amendment submission without having reached an agreement on the terms with its European creditors and although discussions with their representatives continue.

Lenders have threatened to not disburse the one billion euros profits from Greek bonds, unless Athens complies with their demands.

They consider the  amendment submission without previous agreement as “unilateral action.”

A decision is expected to be taken at the eurogroup of April 5.

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