“Dragasakis said the government has undertaken a series of initiatives to create a legislative framework for the settlement of red loans, especially for indebted home owners. Lenders say solve the issue no matter what, “but we cannot do it.”
“We can not underestimate the fact that Greece is the country with the most red loans. So there are no manual solutions, there is no manual to deal with the problem. If we do not pay attention, we can make arrangements to lead banks to a point where new funds are needed. And that is why the legislation has not been completed yet.”
Dragasakis said the legislation may come towards end of February or beginning of March.
According to some media, the four Greek systemic banks lost another 13.53% of their value in January, all four banks are worth 3.68 billion euros.
Despite pressure by the lenders, Greece has not solved the issue yet.
At the Eurogroup Working Group (EWG) on Thursday, sources told media, that “Greece has not completed the implementation of all the prior actions agreed.” However, there is still time before the next Eurogroup on March 11, when finance ministers are to make the final decision.
Areas where there are delays include the Katseli law for protection of indebted home owners, the repayment of public sector arrears and electronic auctions. The discussion also touched on the increase in the minimum wage, which was included in the institutions’ report.” ------ It is an important note here that The EuroGroup on its recent meeting decided that the return to Greece of the ECB profits from trading in Greek bonds will be only under the condition that the Katseli law is not prolonged and that home evictions and auctions are hence accelerated. This is the totally predictable development caused by the memorandas and the underlying austerity policy. A policy that has made the number of Non-Performing Loans and mortgages explode from the high unemployment and from the reduced salaries and pensions and making ordinary Greeks no longer being able to pay. The next step in this process will be extensive foreclosures and auctions of homes by the banks to satisfy the need of capital. Banks with stakeholders in several cases outside Greece. Maybe it is about time that the many Greeks protesting the FYROM and Prespes issue should instead be turning their eyes and anger in this direction!
