OTOE: Agenda 11 Bad Loan Proposals – Businesses Will Be Saved If They Contribute to GDP and Jobs

position On the subject of auctions and dealing with the private debts of individuals and corporations, the OTOE takes up-to-date proposals that are expected to be submitted to political parties and puts them into public debate.

on the OTOE’s agenda with 11 sentences For bad loans, a distinction is made between real and strategic bankruptcies and the presence of moral hazard, as well as between viable and non-viable companies. OTOE position, as reported by insider.gr OTOE Management Member Markos Tsatsoulis Is that bad debt solution strategy must be elements of social sensitivity for the first stay and sustainable development perspective For all types of companies – small, medium, small and micro – because they represent the largest part of all companies in the country.

PrerequisitesHowever, to settle bad private debts of management companies and banks, is Official registration and disclosure to the competent authorities and public discussion of the following data: the total number of debtors for each loan category (housing, consumer, by business category), for each security asset class and the amount of the corresponding total debt with many specialized and detailed data required to create a complete and clear dimension in all aspects of the subject.

Only in this way, as Mr. Tsatsoulis points out a dialogue will be able to be in common ground and on correct dimensions to problemAnd Without populism.

the suggestions Ha OTOE to Accuracy to Non-performing loans He is:

• As a first and immediate measure by management companies and banks, focus is placed on the category of large non-performing loans, commercial and housing, where there are large sums, cases of strategic default, and the presence of moral risks.
• Smooth and comprehensive application to borrowers by management companies and banks of dynamic products to regulate their loans, while making maximum use of the long-term tools of the Code of Conduct (extension of term, debt separation, interest rate reduction, partial debt cancellation) and the goal that the amount of the monthly installment of the debt should not exceed 40% of the income available.

  Complex and parametric regulation programs will have a positive impact on the stable settlement of credit risks, on ensuring social cohesion and meeting the needs of the Greek economy.
• Increased income standards for reasonable living expenses and set thresholds for vulnerable families, based on recent developments of prevailing high levels of inflation where actual and set thresholds have been exceeded.
• Honest and thorough adherence to all procedures stipulated in the Code of Ethics with regard to terms of contact and procedures for examining objections to borrowers, by management companies and credit institutions, in order to truly protect borrowers and subject them to sustainable arrangements for their loans.
• Protecting the first and only home for families for reasons of social cohesion and preventing extreme phenomena in the real estate market.
• Redefining and enriching the conditions of work of the Real Estate Acquisition and Leasing Agency, in the direction of the borrower’s acquisition of his first home, at a price that takes into account his installments to date and does not ultimately exceed the total repayment value that he has made. She will pay in the event that her loan is not delinquent.

In particular, for non-performing commercial loans of any kind, and outside of any emerging strategic bankruptcies, the process and its important evaluation criteria are required to contain the following Forecasts:

• The arrangement should not lead to a radical restructuring towards excessive concentration of business branches.
• Companies need to take stock of job retention in the recent past but also to adhere to any restructuring plans to create new jobs.
• The business should be evaluated in terms of the direct positive contribution of the sector and the business in supporting the new development and production framework of the Greek economy.
• The indicators of economic and technical feasibility that will be used must be enriched with development criteria, so that automated settlement solutions are not created, which may eventually lead to the annihilation of companies or even entire sectors of the Greek economy.
• In cases of business (especially medium, small, medium and self-employed) that are considered marginally viable, collaborative solutions should be proposed and examined among them, with the aim of maintaining employment on the one hand and creating a new business model for the operation. On the other hand, it can even be based on the traditional cooperative principles and principles of social economy, necessarily taking into account the aforementioned expectations of the new development and production framework of the Greek economy.

It should be noted that the OTOE had submitted proposals for dealing with non-performing loans to the previous government as well, which were recommended by 2015Establishment of a national interbank agency for troubled business loans, with a development perspective and social sensitivity, with the participation of all banks, the HFSF, the Treasury, and special funds, under the strategic supervision of the Government’s Private Debt Board. .

However, the policy that the Greek government finally chose in 2015 was Outsourcing a problem previously held by credit institutions to new firms in the financial sector.