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Piraeus Bank Chief Sallas Opposed to Auctions of First Home

piraeus-bankPresident of Piraeus Bank Michalis Sallas, on Saturday expressed clear opposition to any measure regarding the auctions of primary residences. He also denied that bankers are behind the pressures put on the government by the representatives of the Institutions
Asked to give his personal opinion on the auctions, Sallas stressed “It is a big mistake. Banks will be burdened with an extremely high cost by applying the process of auctions and even the current law on the real estate prices. Besides, this fact constitutes a major social injustice and will damage the banks. If all these tens of thousands of properties are passed to the banks their value would be nullified.”
The banker referred to the costs of maintenance, protection etc., as factors which increase the risk, which are particularly high at a period of crisis as the present and underlined the need for an alternative for borrowers with low income in order to be able to pay a low and symbolic installment, “let’s say, 1.2% of the loan balance.”
In other words, according to Sallas, if, for example, the remaining of a house mortgage is 100,000 euros, which is above the average loan borrowers ability, the lender could pay a maximum of 1,200 euros per year, or 100 euros per month, in substitution of the current payment rate, with parallel suspension of the installments of the loan.
At the same time, Sallas suggested that “a sort of social justice” should be established “for both those who do not have a property and have to pay rent for housing their families and the conscientious loan payers, who feel wronged by the whole situation.”
(Source: ANA-MPA)

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