Greece, Changes in Credit Consolidation System

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The government and Greek banks are considering a change of rules governing the operation of the Tiresias Credit Consolidation System, by introducing a more flexible system in order to stop the rising number of bad loans.
In this context, authorities are examining the revision of Tiresias regulations towards a more flexible framework and eventually towards the return of “bad” borrowers such as businesses, freelancers and households to the category of solvent borrowers.
Tiresias Credit Consolidation System contains data concerning consumer and housing loans, credit cards  and loans to small and medium-size businesses (with annual revenue less than 2,5 million euros). It contains information about the status of the credit (current balance with no delinquency, delinquent balance etc). The function of the databank and all the relevant activities secure the regular collection of data from credit and financial institutions regarding debts from loans.
Bank of Greece will use the help of an international consultant on the issue of bad loans. Bank officials say that 35 percent of loans are in a state of definite delay, meaning that there haven’t been any payments in the past 90 days or more, while over 50 percent of borrowers have at one point received a credit warning by the system of Tiresias.
In the next few weeks, the government and the central bank will draft a series of legislative and supervisory initiatives for the handling of bad loans and the resurgence of the banking market.
The changes of the Tiresias regulations does not mean borrowers will be granted a debt write-off. More flexible regulations will only pertain to those who have actively shown they can be reliable and consistent in their payments. Banks have stressed they will not be lenient with borrowers who have used the economic crisis as a pretext to forfeit on their obligations or to share their losses with the credit system./greekreporter/
Greece, Changes in Credit Consolidation System Greece, Changes in Credit Consolidation System Tuesday, July 15, 2014 Rating: 5
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