The pace at which borrowers who took out loans in Swiss francs are enrolling in the repayment plan is picking up. According to information from Euro2day.gr, the percentage of those who have applied for the restructuring program now stands at 40%, and based on banking sources, it is expected to rise further—with estimates putting it at 60%.
The deadline for joining the program is August31. Eurobank holds the largest loan portfolio, amounting to 1.5 billion euros in Swiss francs. As for the other banks, Piraeus Bank ranks second in terms of loan volume in this category, followed by National Bank of Greece and Alpha Bank, which have significantly lower exposure.
Debt Restructuring
The regulation enacted by the Ministry of National Economy and Finance applies to borrowers who are up to date on their payments and those who have settled (i.e., through a repayment plan) their loans. The key principles on which it is based are as follows:
- There is a provision for converting the loan into euros with a significant improvement in the current exchange rate. Through this, an immediate reduction in the principal owed in euros is anticipated.
- The debt relief (i.e., haircut) is tiered, ranging from 15% to 50%, depending on the borrower’s financial and social circumstances. The more financially vulnerable the borrower is, the higher the haircut percentage.
- The loan is converted to euros with a fixed interest rate of 2.30%–2.90% for the entire remaining term.
- An extension of up to 5 years is available to further reduce the monthly payment.
Criteria
The income and asset criteria that a borrower must meet to qualify for the arrangement are:
- The first category includes those with an income of €7,500 to €22,000. Real estate valued at €125,000 to €185,000. Deposits ranging from €7,500 to €22,000.
- The second category applies to those with an income of €9,375 to €23,375. Real estate valued at €156,250 to €216,250. Deposits ranging from €9,375 to €23,375.
- The third category applies to those with an income of €11,250 to €25,250. Real estate valued at €187,500 to €247,500. Deposits ranging from €11,250 to €25,250.