Greece’s Minister of National Economy and Finance and Eurogroup President, Kyriakos Pierrakakis, has issued a statement regarding the new framework for regulating private debt and the operation of debt servicers, calling for clear rules and real consequences for those who break them. “We want protection for the compliant debtor. And accountability for anyone who violates the rules,” he stated.
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Pierrakakis on private debt: “We are putting an end to open-ended negotiations”
“With the new framework, we are establishing clear rules in the private debt market and introducing real consequences when those rules are broken. For the first time, we are putting an end to open-ended negotiations with no deadlines. We are capping the down payment requirement at 15%, instead of the current demands of 30%, 40%, or even 50%. We are protecting the compliant debtor. As long as they are adhering to their repayment agreement, they cannot be subjected to seizure or foreclosure. And if the servicer fails to provide them with full details of their debt within 45 days, interest charges are frozen.
At the same time, we are tightening the regulatory framework for debt servicers. Greater transparency, stricter oversight, binding sanctions, and fines of up to €500,000. The logic is straightforward. Citizens who are in debt need to know where they stand and must be offered a repayment plan so they can settle what they owe. And whoever manages that debt is obliged to respect the agreement, the citizen, and the law. We want protection for the compliant debtor. And accountability for anyone who violates the rules,” said Kyriakos Pierrakakis regarding the new framework for private debt regulation and the operation of debt servicers.
