Milena Apostolaki described the government’s withdrawal of the controversial Article 23 as a disorderly retreat and an extremely old-style partisan attempt to manage the political cost. She was speaking in the Plenary as PASOK’s rapporteur on a multi-bill submitted by the Ministry of National Economy and Finance concerning the management of claims arising from loans.
The MP for Athens’ Northern Sector recalled that the government had sought, through the provision, to make private debt-settlement agreements enforceable instruments. This would have allowed banks, funds and servicers to expedite auctions, bypassing judicial protection for borrowers.
She also highlighted the contradiction between withdrawing Article 23 and retaining the same provision for the out-of-court mechanism. The PASOK spokesperson for banking and private debt called on the government to support the party’s amendment to abolish the enforceable instrument.
Ms Apostolaki called for PASOK’s legislative proposal to be debated and approved without delay. It provides for repayment in 120 instalments at an interest rate of 3%, compared with 5.84% under the government’s proposal. It also includes reductions of 40% to 85% in surcharges and fines, a 30% write-off of the debt after 70% has been repaid, the inclusion of debts owed to municipalities, and a tiered down payment.
The proposal also includes the reintroduction of primary residence protection, strengthening the out-of-court mechanism and protecting agricultural land. It also introduces the borrower’s right of first refusal before a claim is transferred, and protection for guarantors by limiting their liability to the actual price paid to acquire the claim, as well as binding rules on creditor accountability.
Responding to Kyriakos Pierrakakis, PASOK’s rapporteur said he was deliberately distorting the party’s legislative proposal “to escape the vice grip of non-performing loans”. She explained that the proposal does not make bankruptcy a condition for protecting a primary residence, but provides for its exclusion from liquidation by court order, with repayment terms of up to 35 years.
She also recalled that the right of first refusal provides for the claim to be bought at a price higher than the fund’s offer, safeguarding the bank’s interests. Meanwhile, the Debt Settlement Committees add a mechanism for meaningful oversight without abolishing the electronic process.
“I am addressing the country’s responsible and honest borrowers, and I want to tell them clearly: you are not alone. Meaningful protection for borrowers is a moral commitment and a political priority for PASOK”, Milena Apostolaki said in her closing remarks, pledging legislative support after the forthcoming elections.