Non-Performing Loans
19.10.2016
Question for written answer E-007883-16
to the Commission
Rule 130
Manolis Kefalogiannis (PPE)
Greece has been in recession for the past eight years. Its total GDP has contracted by almost 30%, and unemployment still remains at 25%.
The Greek Government decided by way of Law 4389, to sell the loans granted by banking and financial institutions to factoring companies.
The law has not made any provisions to protect borrowers who live at or below the poverty line.
This particular law also fails to establish a range of provisions consistent with the acquis communautaire and EC laws, such as granting a pre-emption right to the borrower or any such person whom he/she may choose on the same terms and conditions provided to factoring companies.
Finally, no provisions have been made to make the granting of unlimited personal security by the borrower or the security provider unlawful — and therefore null and void — if the bank cannot produce written evidence that it has properly informed them of the range of legal commitments which they are entering into when signing.
In view of this, Can the Commission say:
- —If the aforementioned provisions are consistent with EC laws and the acquis communautaire?
- —Does it intend to launch an initiative of any kind to protect truly helpless borrowers who live at or below the poverty line, and if so, what action will it take?