A difficult equation proves to be the solution for the approximately 35,000 Swiss franc borrowers. Despite the government’s willingness to solve the issue, the announcements of a solution have been counted without the hotelier, as they hit the wall of “Hercules”. The possibility of a decline in guarantees that accompany the securitization of non -performing openings, including loans in Swiss franche is worried about the Bank of Greece.
Both the BoG and the European Central Bank, which should approve the government’s decision on loans in Swiss francs, evaluate the impact of a “haircut” of the equivalence of loans to a Swiss on financial stability. And this will be cut off if a solution is decided for a specific portion of borrowers, which will endanger the securities of securitization and thus lead to the fall of the state guarantees accompanying the Heracles program. This will be a blow to banks, but mainly for public debt, that is, for the Greek taxpayer.
For banks, the cost of the “haircut” of the Swiss franc loans in question has been estimated at about 300 – 400 million euros. This amount will need to receive additional provisions by depriving the actual economy of funds that can be made available for credit expansion with new lending. About EUR 350 million is also estimated for the costs for the service loans managing securities, judging the fate of state guarantees.
The above costs will also be reflected in the image of the Greek economy. The fall of the state guarantees of “Hercules” must be avoided at all costs for prestige and substance reasons, as they will spoil the success story that Greece has to present to the international investment community.
All of the above leads to arrangement for Swiss franc borrowers, which will be sparse and reasonable and is not expected earlier than September.
The government’s proposal, based on information that has leaked to the press, provides for a different treatment of Swiss franc borrowers, depending on their income and assets, with a final “haircut” in their loan equivalence of 10% to 25%.
In particular, the plan of the Ministry of National Economy and Finance speaks of 4 categories of borrowers:
- Borrowers with income of up to 22,000 euros a year and real estate of up to 185,000 euros, depending on the composition of the household. These borrowers are expected to propose a “haircut” at the current Swiss franc (ie the equivalence that will apply when the Swiss franc loan is signed by a 25%loan. The interest rate is projected to be stable at 2.30% for the entire remaining loan.
- Borrowers with an annual income of up to EUR 27,500 and real estate up to 231,250 euros, depending on the composition of the household. The “haircut” given will move to 20%. The interest rate is projected at 2.50% stable.
- Borrowers with income of up to EUR 33,000 per year and real estate of up to 277,500 euros, depending on the composition of the household. The ‘haircut’ through the exchange rate is expected at 15%, while the interest rate will be 2.70%.
- Borrowers for whom they will not examine income or property criteria for joining the regulation. The predicted “haircut” in this case will be 10%.
It is noted that the swoller of the euro against the Swiss franc has already brought about 70% of Swiss franc borrowers in the capital loan capital.
The legislation expected by the government will be fully voluntary for borrowers, who, if they consider it advantageous, should resign.
Alternatively, Swiss borrowers will be able to appeal to the out -of -court mechanism, accepting the automated electronic platform arrangement, as it is for all borrowers.