home grabs a highrisk mission for fragile greek government
Last Updated : GMT 00:27:23
Arab Today, arab today
Arab Today, arab today

Home grabs a high-risk mission for fragile Greek government

Arab Today, arab today

Arab Today, arab today Home grabs a high-risk mission for fragile Greek government

Athens - AFP

Rising poverty, pressure from creditors and a looming parliamentary revolt: Greece's government has its work cut out as it ponders whether to broaden home foreclosures to thin the ranks of evasive debtors. A law passed in 2010 currently protects the principal residence of debtors from outright seizure, providing a cushion of support in a country stuck in a six-year recession and four years of austerity cutbacks. But according to Greece's creditors -- the EU, IMF and the European Central Bank -- the measure has been systematically abused. "The moratorium on seizures has brought about an important increase in strategic bankruptcies, meaning people who stopped repaying their loans even though they had the means to do so," Poul Thomsen, head of the IMF's audit mission to Greece, told Kathimerini daily in a recent interview. The protective measure is set to lapse in January, and has become a major sticking point in negotiations between the so-called troika of creditors and the government in return for loans under from the Greek bailout agreement. According to Kathimerini, the ban reduced home auctions by 50 percent between 2009 and 2012, and removing it could see 110,000 homes seized and sold. "Changing the rules on home seizures would mark the beginning of a political, economic and social rupture," said Louka Katseli, the former finance minister who promoted the law in question. One prominent magistrate has warned that ending the moratorium on foreclosures would cause "a second Asia Minor disaster", referring to the traumatic conclusion of the Greek-Turkish war of 1919-1922 that saw the elimination of Anatolia's ethnic Greek minority through killings and exile. Seeking a compromise Facing an internal revolt on the issue from its own lawmakers, the coalition government of conservative Prime Minister Antonis Samaras is seeking a compromise that will satisfy everyone. "The weak will be protected, poor and middle-class households will be protected," government spokesman Simos Kedikoglou told Antenna television on Tuesday. "We are trying to locate freeloaders, and protect those who truly can't meet their obligations owing to the crisis," he said. The European Commission this week also stressed that it was merely seeking to "rework" the ban to eliminate "systematic abuse brought about by the general moratorium." For Nikos Magginas, an economist at the National Bank of Greece, the problem lies in Greece's notoriously cumbersome justice system that can take up to five years to resolve litigation. In the case of claimants seeking protection from their creditors, "debt repayment is frozen for as long as it takes to reach a verdict," he noted. Greek banks estimate non-performing loans at 29 percent of total loans, of which a large share are mortgages. In comparison, Spain -- where home seizures are more frequent -- has a non-performing loan rate of 12.12 percent. Greece's so-called troika of creditors argue that the ban needs to be re-examined to prevent endangering the banks, which were only recently recapitalised after helping a major operation to reduce the country's state debt last year. But a sharp increase in home auctions would be catastrophic for property prices in Greece, which are already down 30 percent from 2010 figures owing to the recession. The government and the troika are expected to reach a deal before the moratorium expires at the beginning of January. But with a majority of just four MPs in parliament, the government risks being ripped apart over the issue as several conservatives ave warned they would rebel against any deal that guts the moratorium. And critics warn that even if the government manages to extract an exception for poor households, defining poverty in a country where incomes have fallen so dramatically is next to impossible. Consumer associations note that with taxes steadily increasing in the past three years, even people with nominally high salaries have trouble making ends meet. According to state statistics dating from 2011, 23.1 percent of Greeks are exposed to poverty. Conditions have since deteriorated further, placing Greece at the head of European rankings in this category.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

home grabs a highrisk mission for fragile greek government home grabs a highrisk mission for fragile greek government

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

home grabs a highrisk mission for fragile greek government home grabs a highrisk mission for fragile greek government

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today The Big Apple bike boom

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Leaders of Russia, Iran, Turkey meet

GMT 10:12 2017 Wednesday ,22 November

Leaders of Russia, Iran, Turkey meet
Arab Today, arab today 'Advanced' cyber attack targets Saudi Arabia

GMT 10:18 2017 Wednesday ,22 November

'Advanced' cyber attack targets Saudi Arabia
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 13:41 2017 Tuesday ,21 November

French choke up over proposal

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday