Special Secretariat for Private Debt

The bridge program for the protection of borrowers' main residences that the Finance Ministry is preparing will strictly concern a period of nine months and only the mortgage debtors proven to have been hurt by the pandemic's financial crisis.

At the very end of 2019 the state paid the first four subsidy tranches of mortgage loans for as many borrowers who have had their bank debt repayments arranged through the online platform of the Special Secretariat for Private Debt.

The new regulations on the protection of the main residence of debtors, agreed on Thursday by the government and the managers of systemic banks, may maintain a relatively large safety net, but sets strict terms that lead to a substantial clearing process through the provisional screening of applications so as to exclude strategic defaulters.

The out-of-court workout mechanism for the settlement of overindebted corporations' arrears is proceeding very slowly, as six months after the process was activated, just 520 applications have been submitted to date on the Special Secretariat for Private Debt's online platform.