Protection for the primary residence with objective value of 200,000 euros and income of 35,000

Development Minister Kostis Hadjidakis is currently presenting the setting for the institutional framework for the protection of the primary residence of borrowers.

According to the plan, which has not been approved by the troika, the primary residence with an objective value of 200,000 euros will be protected from the auctions. The borrower must also have an annual net family income up to 35,000 euros and their overall fortune not to exceed 270,000 euros. For people with disability of 67% and above the limits are increased by 10%.

The total value of movable and immovable property must be less than or equal to 270,000 euros. Of this amount, the total deposits and securities of the debtor must not exceed 15,000 euros.

A further condition is that the borrowers must pay installments equal to 10% of their net income if it is up to 15,000 euros and from there on the rate will be raised to 20%.

As Hadjidakis said, this is a transitional measure as the Greek government does not want a general abolition of auctions. As he said, from 2015 there will be a permanent framework for debt management of non-performing loans. The government will also adopt the term "cooperative borrower" under criteria that will be set by ELSTAT.

Regarding the code of conduct, it will include the method of determining the relations between banks and borrowers and the Hellenic Consumer’s Ombudsman will be able to intervene.