Troika threatens 200.000 mortgage holders

Since last summer, the marooned households are waiting for an arrangement as was achieved for the rest mortgage holders.

The National Workers' Union of Greece asks the intervention from the Greek Bank Union, in order banks to proceed to the extension of their mortgage payments, reports "Imerisia" newspaper.

Banks are not only positive towards that direction, mark sources of the Greek Bank Union, but "they are already waiting for the green light in order to proceed to settlements without aborting the interest rest subsidy. In order this to be achieved there must be a change of the law, something that is Ministry's of Labor jurisdiction.

The ministry has processed a two levels intervention. "The "renewal" of the settlement that had been achieved for the loans which were approved directly by SHO, and passing a law for those whom their loans were approved by banks with interest rate subsidy by the SHO. But all these plans are blocked by troika.

It is worth mentioning that all the loans that were approved directly by SHO had compulsory 15 years duration, the fund was under 120.000 – 130.000 euro, and interest subsidy percentage varied among 50% -100% according the family status of the mortgage holder.

For example, for a 120.000euro mortgage the interest today reach 170 euro with a rate of 2.4%. A mortgage holder with a 65% interest subsidy has to pay 40 euro. The problem is not the interest but the short duration of the loan that boosts the amount of the month installment.

Specifically, the same mortgage holder for a 120.000euro mortgage pays 756euro per month. When subside is over then the amount will boost to 900euro.
The mortgage holders ask for an extension of the repayment to 20 or 25 years without losing the subsidy. According to the records, SHO beneficiaries are divided in two categories.

Roughly 97.000 mortgage holders have active loans with interest rate subsidy, and 80.000 until 100.000 either have been financed by SHO or have taken houses with concession.

Based on the drawn regulation - that remains "frozen" because of troika-, 97.000 mortgage holders could extend up to 10 years the duration of settlement. In this way, will be achieved an average reduction of 50% in the monthly repayment amount.

The certain beneficiaries cannot proceed into a new arrangement with the banks because they will lose the subsidy of interest-rate, which was in effect for the first 9 years. The last loans of this program were granted in 2011; afterwards SHO was discontinued and replaced by the Organization for the Occupation of the Work Force (which has the jurisdiction today).

Another 80.000 to 100.000 beneficiaries that were loaned by SHO funds -and many of them cannot repay- are keeping on hold.
There were also proposals for new settlement like the one of 2011 but there was no development.