Non-performing mortgages in Greece and increasing the number of instalments of debts in arrears to the revenue office and social security funds
| 9 September 2014 |
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| Question for written answer to the Commission Rule 130 Notis Marias (ECR) |
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At the meeting in Paris of 2-4 September 2014 between the Greek Government and the Troika, lenders’ representatives insisted that the ban on auctions of primary residences be lifted after 31.12.2014 and refused to countenance any increase in the number of instalments of non-performing debts to the revenue office which are worth more than EUR 67 billion and to pension funds which are worth more than EUR 17 billion.
Given that at least one in four Greeks is unable to repay his or her loan to the banks, there are 1.5 million unemployed in Greece and 55% of homeowners are unable to pay their taxes, will the Commission, as part of the Troika state:
| 1. | Does it insist that auctions of primary residences be allowed from 1.1.2015 and that they can be auctioned off at a third of their objective value, even though the value of non-performing mortgages amounts to EUR 25 billion and borrowers are unable to service their loans because of the economic damage inflicted on the Greek economy by the Memorandum imposed by the Troika, as, incidentally, the European Parliament accepts in its resolution of 13.3.2014? |
| 2. | Does it stand by its refusal to increase the number of instalments for debts in arrears to the revenue office and social security funds to at least 120? |
Source: European Parliament
Answer given by Mr Katainen on behalf of the Commission |
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1. With regard to the suspension of auctions for primary residences, an appropriate balance should be found between minimising moral hazard and providing a cushion for people in financial difficulties. In this light, law 4224/2013 adopted in the context of the Greek adjustment programme(1), introduced a temporary scheme regarding auctions of debtors` primary residence which ends in December 2014. This temporary arrangement was introduced following the expiration of the moratorium on the auction of the debtors’ primary residence on December 2013. Under the adjustment programme(2) the Hellenic authorities have committed to develop a coherent plan for a means-tested social safety net for vulnerable homeowners.2. The instalment schemes referred to by the Honourable Member were introduced by the Greek authorities in July 2013 to help payment of tax and social security debt. The issue of the implementation of instalment schemes is being discussed in the context of the 5th review.
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Source: European Parliament
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