Greece limits foreclosure protection after financial crisis


ATHENS, Greece (AP) — Lawmakers in Greece begun Wednesday to debate tougher regulations to deal with household insolvency in the wake of the country’s financial crisis.

The debate started at a parliamentary committee even though the government has so far failed to finalize an agreement with bailout creditors on details of the new regulations.

Roughly 47 percent of Greek loans had soured by late last year after unemployment and poverty soared during eight years of crisis and international bailouts. Banks have promised to reduce that level to below 20 percent by the end of 2021.

During the crisis, most distressed mortgage holders were protected from foreclosure of primary family residences but the new rules would limit the safeguards to low-income families.

Greece no longer relies directly on bailout loans for financing but its massive national debt, which is the equivalent of 180 percent of the country’s annual GDP, has left the country in need of additional debt relief measures from the eurozone’s rescue fund, the European Stability Mechanism, and other creditors.

Watch: Refs Miss Blatant Foul as Caitlin Clark Gets Slapped, Sparks Instant Rage in Fans Who've Had Enough

Lenders earlier this month delayed approving an additional round of relief measures worth nearly 1 billion euros ($1.13 billion) — that includes profits on Greek government bonds held by the European Central Bank — until details of the new insolvency law are fully agreed. Creditors have expressed doubts that the new rules will adequately identify so-called strategic defaulters who have the ability to pay their debts but exploit protection regulations.

In Athens, government spokesman Dimitris Tzanakopoulos said he still expected Greece to qualify for the relief measures at a meeting on April 5 of eurozone finance ministers.

“There are only two or three unresolved issues and agreement has been reached on all other matters,” he said.

“It is clear that we reserve the right as the Greek government to have a better understanding of the Greek real estate market than our partners do.”


Follow Gatopoulos at

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Truth and Accuracy

Submit a Correction →

We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands. Photo credit: @AP on Twitter
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.
New York City