Gains for those included in the new regulation for loans

The new concessions for borrowers affected by the crisis are relieving, but will not come for all of those affected in Greek society.

The central objective of this effort as showed today by Development minister Kostis Hatzidakis and vice minister Thanassis Skordas, and after the agreement with troika, is to create an umbrella-like setting for affected households that have not borrowed unthinkingly, but saw their incomes decline significantly and are unable to manage the installments to the banks.

The first component of these configurations has to do with informed borrowers. This concerns households that in the last two years have seen their income reduced by 20%, and should have an annual net income of 25,000 euros, with their gross income quite above that. The annual installments to be paid by these households will be around 30% of their annual income. This setting is valid for four years.

During the negotiations with troika the Greek government had requested the limit be increased to 35,000 euros to broaden the number of citizens who will be served, but troika appeared nonnegotiable because it considers that an income over 25,000 euros per year is close to the European average, but forgetting the heavy taxation upon Greek citizens, which in cases reaches even more than 40% of their income.