Bankruptcy

Banks are expressing serious objections to the government blueprint for the new system to protect debtors' primary residences. Their criticism focuses on five main issues which, if not taken into account, would undermine the effort to reveal strategic defaulters and could create a new pool of borrowers who are unwilling to cooperate, according to credit sector officials.

Greek jewellery maker Folli Follie's board of directors has approved a restructuring plan backed by a group of bondholders, the company said in a bourse filing on Thursday.

Early next week the government will send the country's creditors the final text of the amendment to the Katseli law, as up until Friday certain disagreements remained among the competent government officials on how to respond to reservations expressed by the creditors.

The fate of the plan for settling tax debts in 120 installments remains unknown, as the government did not present it to the representatives of its creditors during this week's negotiations in Athens, while a senior official left it open as to whether such a proposal would be submitted at all.

The new plan for restructuring arrears to social security funds foresees a haircut to the original debt averaging between 50 and 55 percent, and a write-off of late fees by up to 85 percent, sources have told Kathimerini.

The government is expected to include debts that expired in 2018 in the provisions of the recently revised out-of-court debt settlement mechanism.

The government proposed on Friday an out-of-court settlement model to banks for the debts that individuals owe to them, which foresees the subsidization of payment tranches so as to protect the main residences of debtors who are unable to meet the requirements of their arrangements.

The future appears bleak for what is left of the Halyvourgiki steel producer: Although production effectively ceased back in 2013, today, now that Public Power Corporation has switched off its electricity supply due to debts, the options of creditor banks are particularly limited.

The government is considering offering a package of possible arrangements for corporations' and self-employed professionals' debts to the state, although the settlements to be proposed have been rejected by the country's creditors in the past.

Greek jewelry maker Folli Follie will seek creditor approval for a planned overhaul of the business, it said on Tuesday, after announcing details of its restructuring following lengthy discussions with advisers.