In the final stage, the preparation of government regulation enters for the loans in Swiss francan issue that plagues tens of thousands of borrowers more than a decade.
The Financial Staff, in consultation with banks and services, plans to intervene to attempt to decompress those who had previously received a loan in Swiss francs and saw their debts dramatically swell due to currency overturning after 2008.
The arrangement, which is expected to be announced in 2025, as said in a recent interview by government vice-president, Kostis Hatzidakis, or possibly in the summer- as it was the original announcement that has spoken for the first semester- will seek to offer about 70,000, They are served with great difficulty or they have “blushed”.
The upcoming intervention based on the proposals that have fallen on the table will be based on three axes:
First, it is proposed haircut of excess debt resulting from the equality difference between the euro and the Swiss franc. It is recalled that most of the loans were granted when the franc was close to 1.60 per euro, and today it is moving below the equivalence of 1 euro to 0.95 francs, echoing the final capital.
Second, it is proposed to conversion of loans to eurowith the possibility of a new regulation that will include either a fixed interest rate or Euribor plus margin, as well as elongation of the duration. In many cases, the transition to a new loan with clearly more favorable terms is being considered so that it can be included in the out -of -court mechanism.
Third, it is proposed to exist separation of borrowers into categories – Vulnerable, overwhelmed and “stronger” financially – so that the arrangements and haircut rates are adjusted according to the repayment capacity.
The role of out -of -court and security valves
A significant part of the solution will be implemented through the out -of -court mechanism, which is already promoting modifications to include loans in Swiss francs in more favorable terms than already applicable. According to unconfirmed information, it will be allowed to set up up to 420 doseswith a simultaneous increase in income limits for integration.
The creditors involved (banks and management companies) are said to be positive, as most of these loans have now been secured and integrated into the Hercules program. However, in order to proceed with the arrangement, it is required The consent of institutions and the European Central Bankso that the rules on state aid or the obligations of public guarantees are not considered to be violated.
Judicial developments and political will
The need for a political solution became imperative after the recent Supreme Court decisions, which did not justify the borrowers, rejecting arguments for the abuse of the equality clause. Unlike countries such as Poland and Slovenia, Greece has not been adopted in Greece that automatically considers the relevant clauses invalid.
The Treasury has recognized the need to give a “fair and applicable solution” and has announced that the issue would be addressed in 2025, but without promising a horizontal debt write -off.
The government is gearing up to a solution not based on temporary “patches” but on definitive settlement of these loans, in a way that not to create a new generation of ‘red loans’ which will “derail” banks’ balance sheets, and enhance financial stability. Indeed, it is not excluded that the solution that will be chosen is a role model for the treatment of other “toxic” portfolios that remain in bank or servicers books.