Mortgage

Greece will sell 875 million euros ($1.23 billion) of three-month treasury bills on May 9 to refinance a maturing issue, debt agency PDMA said on Friday.

Athens rolled over three-month T-bills last month, with the paper priced to yield 0.79 percent. In a rollover, T-bill holders renew their positions instead of getting paid on the maturing paper they hold.

Banks are preparing to make joint proposals for the settlement of bad mortgages (with write-offs of up to 50 percent) and bad consumer loans (up to 90 percent) to almost 157,000 debtors who have filed for protection under the provisions of the so-called Katseli Law.

This Friday the E-Auction online platform for foreclosures will for the first time also open for the state, which will start using the tool to pressure major debtors to settle their arrears to the tax authorities.

Businesses and individuals who make sure they have honored their obligations toward the taxman have every reason to be outraged.

For example, entrepreneurs who make their loan repayments on time feel stupid when banks offer privileged terms to businesses that have been badly managed and which are obviously unsustainable.

Greece's largest commerce and legal associations have urged the government to urgently reform laws protecting distressed mortgage holders, warning that tens of thousands of struggling families could lose their homes this year.

Eight in 10 foreclosed properties put up for auction by banks are acquired by the lenders themselves, as prices are failing to attract private buyers.

The number of strategic defaulters may actually be twice the figure originally estimated by banks, as they may account for 40 percent of the borrowers who have stopped servicing their debts, mainly from mortgage loans, according to senior banking sources.

Public Power Corporation's tough challenge of refinancing its loan obligations of 2.2 billion euros by the end of 2019 is forcing the company to contemplate the sale of assets such as DEDDIE, its 100 percent subsidiary that operates the country's power network.

A group of people protesting property foreclosures stormed the premises of the Bank of Greece in central Athens on Wednesday.

The protesters - about 25 individuals believed to be members of the "I Won't Pay" movement - were carrying banners with slogans opposing the auction of properties belonging to debt-racked Greeks and handed out fliers with similar messages to passers-by.

Banks are placing emphasis on long-term debt settlements, particularly for mortgage loans, which under certain conditions would include forgiving part of the original amount owed.