The proposals of SYRIZA-Progressive Alliance for the management of private debt and the issue of housing will be presented by the chairman of the Parliamentary Group of the party, Nikos Pappas, at the meeting he will have at noon in Thessaloniki with representatives of the productive bodies, in the context of the of his visit to the 88th TIF.
According to SYRIZA-PS sources, Mr. Pappas is expected to invite progressive forces to cooperate in supporting households, small and medium-sized businesses, laying the foundations of progressive programmatic (and later, electoral) cooperation.
For private debt
Regarding private debt, he will present data showing that total private debt (of households and businesses) has increased by more than 10% since 2019 and will make the following proposals:
1. For the out-of-court debt settlement mechanism
Establishment of mandatory acceptance of the arrangement by servicers and funds as a minimum for vulnerable debtors.
2. Protection of vulnerable borrowers
Increase in income criteria, calculating reasonable living expenses as determined by the official indicators of the Hellenic Statistical Authority (ELSTAT), increased at least by a percentage of at least 50%.
3. Protection of first home
Defining criteria for the possibility of gradual debt cancellation, at least for borrowers who have fallen into a long period of vulnerability, without this automatically implying the liquidation of their main residence.
4. Bankruptcy law
Repeal of law 4738/2020 and its replacement by the new bankruptcy law which will prioritize the option of debt restructuring over liquidation which is the current option. Possibility also for natural persons without bankruptcy capacity to be automatically exempted after three years have passed from the point of time defined as the starting point by the declaration of bankruptcy
5. Herakles Guarantee scheme law
Changes to Law 4649/2019 in the direction of the transparency and accountability of the Ministry of Finance, the Ministry of Finance, the Ministry of Finance, the Ministry of Finance, the Greek Ministry of Finance, the Parliamentary Audit, the determination of regular re-evaluations of the business plans of securitizations and the recording of the culpability of random deviations, the rearrangement of the bond servicing waterfall in case of significant deviations management responsibility.
For the Roof
On the issue of Housing, he will mention that rents have increased by 50% in the last five years. That in 2023, one in two Greeks had overdue debts on their housing costs (mortgage or rent, utility bills or rent), when the corresponding EU average is 9.2%. That Greece belongs to the last level of the E.U. in the housing policy, spending only 0.3% of its GDP on housing (half of the European average) and due to the inability of the extrajudicial to solve the issue, property auctions follow with the main loss being the first residence.
The programmatic commitments of SYRIZA-PS include, among others:
1. The creation of a Deputy Ministry of Housing Policy.
2. The reconstitution of the OEK.
3. The prevention of auctions and the protection of the first residence.
4. The increase in the rent subsidy.
5. Programs for the creation of public social housing.
6. Elimination of homelessness.
7. Covering the housing needs of students & civil servants in stressed areas.
Source: RES
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What are the key proposals by SYRIZA-Progressive Alliance to manage private debt and the housing crisis in Greece?
Table of Contents
SYRIZA-Progressive Alliance Unveils Comprehensive Proposals for Managing Private Debt and Housing Crisis
As the 88th Thessaloniki International Fair (TIF) gets underway, the Chairman of the Parliamentary Group of SYRIZA-Progressive Alliance, Nikos Pappas, is set to present the party’s proposals for tackling private debt and the housing crisis in Greece. In a meeting with representatives of productive bodies in Thessaloniki, Pappas will outline a comprehensive program aimed at supporting households, small and medium-sized businesses, and laying the groundwork for progressive cooperation.
Private Debt: A Growing Concern
According to SYRIZA-PS sources, the total private debt of households and businesses has surged by over 10% since 2019, making it a pressing issue that requires immediate attention. To address this, SYRIZA-Progressive Alliance proposes the following measures:
- Out-of-Court Debt Settlement Mechanism: Establishing mandatory acceptance of the arrangement by servicers and funds as a minimum for vulnerable debtors.
- Protection of Vulnerable Borrowers: Increasing income criteria, calculating reasonable living expenses as determined by the official indicators of the Hellenic Statistical Authority (ELSTAT), by at least 50%.
- Protection of First Home: Defining criteria for the possibility of gradual debt cancellation, at least for borrowers who have fallen into a long period of vulnerability, without implying the liquidation of their main residence.
- Bankruptcy Law Reform: Repealing Law 4738/2020 and replacing it with a new law that prioritizes debt restructuring over liquidation. This would also allow natural persons without bankruptcy capacity to be automatically exempted after three years have passed from the point of time defined as the starting point by the declaration of bankruptcy.
- Herakles Guarantee Scheme Law Reform: Introducing changes to Law 4649/2019 to promote transparency and accountability, including regular re-evaluations of business plans, and rearrangement of the bond servicing waterfall in case of significant deviations.
Housing Crisis: A Growing Burden
On the issue of housing, Pappas will highlight the alarming fact that rents have increased by 50% in the last five years. Moreover, in 2023, one in two Greeks had overdue debts on their housing costs, with the corresponding EU average being 9.2%. Greece ranks lowest in the EU in terms of housing policy, allocating only 0.3% of its GDP to housing (half of the European average). The inability of the extrajudicial system to address this issue has led to a surge in property auctions.
A Call to Action
By presenting these proposals, SYRIZA-Progressive Alliance is calling on progressive forces to cooperate in supporting households, small and medium-sized businesses, and laying the foundations of a progressive programmatic and electoral cooperation. The party’s initiatives aim to provide a comprehensive framework for managing private debt and addressing the housing crisis in Greece.
Keywords: SYRIZA-Progressive Alliance, private debt, housing crisis, Greece, Nikos Pappas, Thessaloniki International Fair, out-of-court debt settlement mechanism, protection of vulnerable borrowers, bankruptcy law reform, Herakles Guarantee Scheme law reform, housing policy.
What are the key proposals by SYRIZA-Progressive Alliance to manage private debt and housing issues in Greece?
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Title: SYRIZA-Progressive Alliance Unveils Ambitious Proposals to Tackle Private Debt and Housing Crisis in Greece
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Greek households and businesses have been grappling with the burden of private debt, which has increased by over 10% since 2019. In response, SYRIZA-Progressive Alliance has unveiled a suite of proposals to tackle this pressing issue, as well as the related problem of housing affordability. Nikos Pappas, the chairman of the Parliamentary Group, is set to present these proposals to representatives of productive bodies in Thessaloniki, as part of his visit to the 88th TIF.
Private Debt Crisis in Greece
Greece’s private debt crisis is a pressing concern, with total private debt (including both household and business debt) having increased by over 10% since 2019. This has placed a significant burden on households and small and medium-sized businesses, many of which are struggling to make ends meet.
SYRIZA-Progressive Alliance’s Proposals for Private Debt Management
To address this crisis, SYRIZA-Progressive Alliance has put forward the following proposals:
- Out-of-Court Debt Settlement Mechanism: The establishment of a mandatory acceptance of the arrangement by servicers and funds as a minimum for vulnerable debtors.
- Protection of Vulnerable Borrowers: An increase in income criteria, calculating reasonable living expenses as determined by the official indicators of the Hellenic Statistical Authority (ELSTAT), increased at least by a percentage of at least 50%.
- Protection of First Home: Defining criteria for the possibility of gradual debt cancellation, at least for borrowers who have fallen into a long period of vulnerability, without this automatically implying the liquidation of their main residence.
- Bankruptcy Law: The repeal of law 4738/2020 and its replacement by a new bankruptcy law, which will prioritize the option of debt restructuring over liquidation.
- Herakles Guarantee Scheme Law: Changes to Law 4649/2019, including the introduction of transparency and accountability measures, the determination of regular re-evaluations of the business plans of securitizations, and the recording of the culpability of random deviations.
Housing Crisis in Greece
The housing crisis in Greece is another pressing issue, with rents having increased by 50% in the last five years. Furthermore, one in two Greeks had overdue debts on their housing costs (mortgage or rent, utility bills or rent) in 2023, whereas the corresponding EU average is 9.2%. Greece also ranks low in terms of housing policy, spending only 0.3% of its GDP on housing (half of the European average).
SYRIZA-Progressive Alliance’s Proposals for Housing Policy
To address the housing crisis, SYRIZA-Progressive Alliance has put forward the following proposals:
- Creation of a Deputy Ministry of Housing Policy: A dedicated ministry to address the pressing issue of housing affordability.
- Reconstitution of the OEK: The re-establishment of the Organization for the Exploitation of Real Estate (OEK) to provide affordable housing options.
- Prevention of Auctions and Protection of First Residence: Measures to prevent auctions and protect the first residence of vulnerable households.
- Increase in Rent Subsidy: An increase in the rent subsidy to support low-income households.
- Progressive Housing Policy: A comprehensive housing policy that prioritizes affordability, accessibility, and social justice.
By presenting these proposals, SYRIZA-Progressive Alliance is sending a clear message that it is committed to addressing the pressing issues of private debt and housing affordability in Greece. Through a combination of debt settlement mechanisms, protection of vulnerable borrowers, and a new approach to housing policy, the party hopes to create a more equitable and sustainable economic landscape for all Greeks.
