Greek Minister of Economy George Stathakis argued that the Greek government must maintain restriction on distressed debt sales, in an interview for Bloomberg.
Resisting calls from creditors to further open the market, he said the government wants to maintain restrictions on the sale of such loans to distressed debt funds. Under the latest accord signed with creditors, Europe’s most indebted state is required to develop “a dynamic market” for non-performing loans and “remove any unnecessary legal or other impediments” to their disposal from banks.
Mr. Stathakis explained that “we have already opened up 50 percent of the bad loans market” and that the goals is “a long transitional period in place for sensitive categories, like mortgages, small consumer loans, as well as loans to small and medium companies”.
Vulnerable households
Although the latest bailout agreement between Greece and its creditors includes provisions for the protection of vulnerable households, the extent the protection afforded is under negotiation with the institutions.
Greece is at loggerheads with creditors over a series of actions required for the completion of its bailout review. The steps are needed to pave the way for the next emergency aid disbursement from the euro area and for debt relief talks to begin. On distressed debt sales, the latest agreement provides for the protection of vulnerable households, but the scope of restrictions remains a subject of ongoing negotiation with officials representing the “quartet” of the European Central Bank, the European Commission, the International Monetary Fund and the European Stability Mechanism.
“There are different views, we are negotiating,” the Greek Minister said.
Source: Bloomberg
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Source: Bloomberg
