Arius Bagus: Decision – the station puts the brakes on the box auctions

possibility of appeal Auctions Provided by loan management companies (the servants) gives to borrowers his decision Supreme court 822/22, at the same time caused distress to the financial government employees.

In particular, in its recent decision, the Supreme Court dismissed the additional intervention by the Loan and Credit Management Corporation as inadmissible, as it considered that it did not have the appropriate certification.

As stated in CA 822/2022, the management corporation cannot continue to fulfill the legal claim in the name and on behalf of the corporation that became the recipient of the claim for assignment.

The loophole in the law

According to the Supreme Court, Law 3156/2003 on securitization does not give the management company the status of an exceptionally legal party, as is the case in the Bad Loans Law (4354/2015).

As the Supreme Court indicated in its decision, the provisions of Law 4354/2015 relating to exceptional certification (as non-authorized parties) of loan management companies cannot be applied proportionately to management companies under Law 3165/2003, because the management company from Article 10 of Law 3156/2003 under contract Authorizing the administration of the receivables earned, without the non-beneficiary, exceptionally certifying, the party designated by law.

“Therefore, it is not legal to perform procedural acts on behalf of the director of the company, nor can the contract concluded between them and the granting of power of attorney exceptionally establish legalization” asserts the Supreme Court.

The dangers of the “Hercules” program

The decision of the Supreme Court also affects the course of the “Heracles” guarantee program, as the “gap” that may exist is estimated at 20 billion euros.

At the same time, major bonds of banks are at risk, because if they lose their value, there will be another “vacuum” estimated at 15 billion euros, with the total effects of the Supreme Court ruling reaching 35 billion euros.

Fragile foundations for bad loans

After the Supreme Court decision, there is concern about the issue of “red loans”, as banks and trusts risk losing the auction “weapon”.

This problem has caused headaches both for the banking industry and for workers, as well as for the financial staff of the government, who are looking for a possible legal formula to bypass the “obstacles” set by the Supreme Court decision.