Debt settlements picking up momentum

The Finance Ministry anticipates fresh debt settlements from banks and management organizations over the next five months, ranging from 1.5 to 1.8 billion euros through the out-of-court settlement mechanism. 

The goal is €3.9 billion in out-of-court settlements, increasing the effectiveness of the mechanism, which, according to data released by the Finance Ministry, offers settlements with an average write-off of around 20% for debts to the state and 30.8% for debts to financial institutions.

The message to banks and management companies to expedite this process was delivered during meetings held on Wednesday and Thursday by Finance Minister Christos Staikouras with representatives of the financial sector.

To date, 6,400 requests for debt settlements to the tune of €2.1 billion have been processed through the out-of-court system.

Moreover, another 5,500...