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Banks: Returns to the spotlight the proposal Salla for the red loans

O member of the Democratic Συμπαράταξης B.Κεγκέρογλου, on the occasion of the question for the red loans, said it would have to be…evaluated the proposals tabled by the former chairman of the BOARD of directors of Piraeus Bank, Michael Sallas, to freeze the part of the loan so that the instalments paid by the borrower after the setting for the chapter. Because, as mr Κεγκέρογλου, with the way we regulate the banks, the loans of “loading” interest on interest and, ultimately, the loans cannot be served.”The proposals of mr. Salla must be adopted by the banks. I don’t have nothing to do with lawmaking,” replied the minister of Economy (D. Papadimitriou and added: “we Will discuss this with the banks, but I don’t think you expect us to legislate for something like that”.WHAT IS THE OPINION of SALLA FROM THE SEPTEMBER OF 2016Η proposal Salla predicts that “banks will be able to separate each of the red, mortgage loan into two parts.The first part that corresponds to p.x. in 90% of the value of the property, will be proposed by the bank for sales and lease back, by expanding, respectively, the duration, and significantly reducing the amount of the monthly service in accordance with the capabilities of the borrower.This ensures that the borrower is not going to depart from the house or lose the property.With regard to the remaining part of the loan, provided in a period p.x. 5 years is not restored to the values of real estate, to delete the 50% of the difference between the total amount of the loan and the amount that has been converted into sales and lease back.The remaining 50% will be deleted in the next 5 years, if you still don’t have changed up the values of real estate. However, if it has repaid part of the loan, it is understood that this will be taken into account.This solution would relieve hundreds of thousands of borrowers, would protect the property values and will not break the balance sheets of banks”.The specific proposal mr. Sallas was put in mind of the competent ministers of Economy and Competitiveness is responsible for the issue of red loans for the last years.This proposal does not need to be applied in spite of an amendment which I will vote in the House and will allow the banks to convert the loans in agreements for sale & lease back, i.e. sales and επαναμίσθωσης. In addition it can be apply to loans relating to principal or cottages and, more generally, in any mortgage loan.Let’s assume that some borrower, who may be unemployed or have substantially reduced his income, has taken a home loan of 100,000 euro, with the value of the real estate during the crisis has subsided to an average of 40%, the value of the house has reached the 60,000 euros, but the borrower continues to owe the bank 100,000 euros.The banks from the payments of borrowers are aware of who have difficulty, who is close to a complete inability to pay the instalments.k.These clients may be agreements sale and lease back for the value of 60,000 euro, and even with lengthening the duration to 15 or 20 years, so the doses are low, depending on the financial possibilities of each, even if the loan was for.x. in 5 years time.The difference of € 40,000 will freeze and it will be deleted gradually over a decade if you don’t recover the prices of real estate.”The banks,” says mr Sallas, “for a lot of red loans have already gotten estimates and have been deleted from the capital part of the injury. Therefore if ease borrowers by reducing the sale and lease back the loan to the actual value of the property will not hit the balance sheets of banks”.”If the banks get from reds borrowers e.x. 100,000 homes, the property values will have gone to waste, sweeping down and the guarantees of the performing loans. However, there are serious practical issues:How do we insure the banks all of these properties? Who will take the custody of them?What will be the tax burden on the banks from the ENFIA it? In what situation would deliver the confiscated residences of borrowers? How they will be serviced by the banks?On the other should not be underestimated, and the social dimension.If we apply the solution that I propose with the sale and lease back, the families will be relaxed by paying a rent to the measures of their capabilities.I will live daily with the terror of eviction and auction”.Source

O member of the Democratic Συμπαράταξης B.Κεγκέρογλου, on the occasion of the question for the red loans, he said that I have to…
evaluate the proposals tabled by the former chairman of the BOARD of directors of Piraeus Bank, Michael Sallas, to freeze the part of the loan so that the instalments paid by the borrower after the setting for the chapter. Because, as mr Κεγκέρογλου, with the way we regulate the banks, the loans of “loading” interest on interest and, ultimately, the loans cannot be serviced.
“The proposals of mr. Salla must be adopted by the banks. I don’t have nothing to do with lawmaking,” replied the minister of Economy (D. Papadimitriou and added: “we Will discuss this with the banks, but I don’t think you expect us to legislate for something like that”.
WHAT IS THE OPINION OF MR SALLA BY SEPTEMBER OF 2016
The proposal Salla predicts that “banks will be able to separate each of the red, mortgage loan into two parts.
The first part that corresponds to p.x. in 90% of the value of the property, will be proposed by the bank for sales and lease back, by expanding, respectively, the duration, and significantly reducing the amount of the monthly service in accordance with the capabilities of the borrower.
This ensures that the borrower is not going to depart from the house or lose the property.
With regard to the remaining part of the loan, provided in a period p.x. 5 years is not restored to the values of real estate, to delete the 50% of the difference between the total amount of the loan and the amount that has been converted into sales and lease back.
The remaining 50% will be deleted in the next 5 years, if you still don’t have changed up the values of real estate. However, if it has repaid part of the loan, it is understood that this will be taken into account.This solution would relieve hundreds of thousands of borrowers, would protect the property values and will not break the balance sheets of banks”.
The specific proposal mr. Sallas was put in mind of the competent ministers of Economy and Competitiveness is responsible for the issue of red loans for the last years.
This proposal does not need to be applied in spite of an amendment which I will vote in the House and will allow the banks to convert the loans in agreements, sale & lease back, i.e. sales and επαναμίσθωσης. In addition it can be apply to loans relating to principal or cottages and, more generally, in any mortgage loan.
Let’s assume that some borrower, who may be unemployed or have substantially reduced his income, has taken a home loan of 100,000 euro, with the value of the real estate during the crisis has subsided to an average of 40%, the value of the house has reached the 60,000 euros, but the borrower continues to owe the bank 100,000 euros.
The banks from the payments of borrowers are aware of who have difficulty, who is close to a complete inability to pay the instalments.k.
These clients may be agreements sale and lease back for the value of 60,000 euro, and even with lengthening the duration to 15 or 20 years, so the doses are low, depending on the financial possibilities of each, even if the loan was for.x. in 5 years time.
The difference of € 40,000 will freeze and it will be deleted gradually over a decade if you don’t recover the prices of real estate.
“The banks,” says mr Sallas, “for a lot of red loans have already gotten estimates and have been deleted from the capital part of the injury. Therefore if ease borrowers by reducing the sale and lease back the loan to the actual value of the property will not hit the balance sheets of banks”.
“If the banks get from reds borrowers e.x. 100,000 homes, the property values will have gone to waste, sweeping down and the guarantees of the performing loans. However, there are significant practical issues:
How will you insure the banks all of these properties? Who will take the custody of them?
What will be the tax burden on the banks from the ENFIA it? In what situation would deliver the confiscated residences of borrowers? How they will be serviced by the banks?
On the other should not be underestimated, and the social dimension.
If we apply the solution that I propose with the sale and lease back, the families will be relaxed by paying a rent to the measures of their capabilities.
I will live daily with the terror of eviction and auction”.
Source

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