The Greek government expects the procedure for the bad loans settlement to be concluded in about six months, according to a document by Economy, Infrastructure, Shipping and Tourism Minister George Stathakis and was sent to the Parliament on April 2. According to the minister, there will be a legislative amendment aimed at the radical relief of debtors and a comprehensive settlement of private debts with solid social criteria and with a view to creating the conditions so that bad loans can become performing and be serviced in the best way possible. The minister said this plan includes two parts: the setting up of a fund to which the loans of over-debted poor households will be transferred and the reform of the current law on the business loans of small and medium-sized companies. However, the “technical aspects and requirements of this regulation are being considered while a consultation with all involved parties is underway. There procedures are expected to be completed in approximately six months.” The document was a response to a query submitted by New Democracy deputy Anna Karamanli on whether businesses that hold Greek government bonds which underwent a “haircut” can make use of the bad loans settlement. Moreover, the minister noted that the government has submitted a proposal for the setting up of an investigation committee that would look into the events that led up to the country’s entry in the two bailout agreements as well as into the conditions under which the PSI was carried out, a development that led to the write down of the reserves of the social security funds, the economic catastrophe of small bondholders and to the need for the recapitalization of the banks. He also noted that there would be an investigation into the banks’ mergers and acquisitions, the selection criteria for the systemic banks and any other relevant issues including the operation of the Hellenic Financial Stability Fund (HFSF). In a separate document signed by the minister and submitted to parliament on April 1, following a query by SYRIZA MP Ilias Kostopanagiotou on property foreclosures, Stathakis reiterated that a legislative amendment on the issue is imminent. (source: ana-mpa)
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