Mr. Kostas Melas emphasizes that with the processes that are currently underway it is understood that the sales are being set aside
In “new ideas” that will contribute to the reduction of Non-Performing Loans (NPLs) and which he will present in a meeting he requested for this reason both with the Minister of Finance Makis Keravnos and with the Governor of the Central Bank Konstantinos Herodotou, he refers to the President of the Association for the Protection of Bank Borrowers (SYPRODAT) Kostas Melas gave an interview to KYPE, who at the same time emphasizes that with the processes that are currently underway “it is perceived that the sales are being set aside”.
“Our central idea is to find a way through the restructurings to avoid sales, with consent, without affecting the current legislation”, emphasizes Mr. Melas, who first refers to the holding of the meetings, before presenting publicly the Association's ideas that will contribute to the reduction of MES.
He also mentions that SYPRODAT will also request a meeting with the main banks of the country, as well as with the Credit Management Companies to present the ideas of these Associations for the reduction of MECs.
Asked to comment on the recent meeting of the Minister of Finance with the Association of Banks, Mr. Melas said that the meeting took place in the context of efforts to “find consensual solutions for the relief of borrowers” and added that “The Minister's effort is persistent and intense and we thank him very much.”
However, the President of SYPRODAT separated the effort to support the vulnerable groups of the population from the issue of reducing the MEX, noting that for the first issue (supporting the vulnerable groups) “the Government has already announced certain measures that must be implemented the sooner”. “the reduction of MEX can only be dealt with by long-term, sustainable restructurings in accordance with the Directive and the Code of the Civil Code”. this is removed from the list of MEX', he explained.
He added that if there is a difficulty in servicing the loan, then by restructuring the loan can be serviced.
The benefit for the Borrower, according to Mr. Melas, “is that the stress of the sale goes away, since he will be able to pay the agreed installment. For the Bank, the benefit will be that it will start collecting liquid money”, he added.
Questioned as to whether sales are taking place today, Mr. Melas said in his interview with KYPE that with the ongoing processes by all the agencies involved “it is understood that the divestments are being set aside”. management of MEX” and “at the same time, initiatives are being promoted by the Banks and Credit Management Companies, since they invite the borrowers to a meeting for discussion with the aim of finding consensual solutions to regulate their loans”, he added .
It also said that Themis Portfolio Management Limited (“Themis”) has announced details of plans to deal with MEXs which are already underway and called on borrowers to “take advantage of the opportunity”.< /p>
According to the President of SYPRODAT, the initiative of the Chief Executive Officer of Hellenic Bank to invite vulnerable borrowers to trust the bank is also welcome, stressing that, 'we are prepared to put our hands very deep in our pockets…'”.
“With all the above processes it is understood that the sales are set aside”, he noted.
At this point, Mr. Melas recommended the specific banking entities to embrace all borrowers and not only specific categories, for the simple reason, as he said,“that everyone is affected by the crisis of increased interest rates and unprecedented precision”.
Furthermore, commenting on the positions of the President of the Republic Nikos Christodoulidis regarding the economy as these were expressed in a recent interview, Mr. Melas initially welcomed the government plans, which will indeed help the vulnerable groups of borrowers, as he said, while he agreed with the position of President Christodoulidis on the issue of sales.
“We agree that the culture of payments should not be undermined, nor should banks' efforts to reduce NPLs be hindered,” he said, adding that “it is important to maintain a responsible attitude and mutual understanding between banks and borrowers.” .
However, Mr. Melas disagreed with the President of the Republic that there was a Law Proposal that weakened the framework of the sales and added that “the so-called 'AKEL Law Proposal' and other parties and MPs was not rejected by the Parliament due to a tie”.
“The proposed Law did not weaken or even touch the current framework of sales, as the President of the Republic claimed at the time”, he added.
He also mentioned thatj “this proposal simply gave borrowers the right to appeal to the Court seeking effective judicial protection, (as required by relevant European directives as well as the Jurisprudence of the European Court of Justice), if and as long as there were overdrafts on their loans as well as abusive clauses in their loans contracts”.
“Banks could avoid getting involved in this legal process by removing all overcharges as well as abusive clauses” , he explained.
He noted that “all of the above are clear positions that put things in their true state”.< /p>
Finally, referring to how the MEX problem arose, Mr. Melas said in his interview with KYPE that “as you know, it was created by the irresponsible over-lending that was done with the tolerance of the Government and of the Central Bank”.
“As if the financial ruin of thousands of Cypriots due to the scandals of the Stock Exchange and the real estate bubble was not enough, then (in 2013) came near collapse of the Cypriot economy, haircut and the illegal uncontrolled sale of securities and shares”, he added.
He also mentioned that “our Cypriot fellow citizens for several years practically ran out of money”.
“There is no longer any doubt about the plight of borrowers due to rising interest rates and the accuracy of goods and services. No one can predict when they will stop burdening all of us”, he concluded.