They’re reducing compromises and preparations with the backs of the Mitsotakis authorities
The federal government could rejoice its “accomplishments” in public funds by distorting the image of actuality, however the gangrene consuming the financial system known as personal debt. Based on the info of the Normal Secretariat of the Monetary Sector and Non-public Debt Administration, the full personal debt (of households and firms) was 371 billion euros initially of this yr, having elevated by 11.% since 2019, when it was 333 billion.
A big proportion of those money owed of households and companies concern money owed to the general public and EFKA. Particularly, overdue money owed to the tax workplace quantity to 105 billion euros, whereas the money owed from insurance coverage contributions of the two.3 million debtors to the EFKA quantity to 47 billion euros.
That is the place one other celebration of the Mitsotakis authorities is available in, given that there’s a discount in personal debt in comparison with 2022 of round 11 billion euros. Particularly, for 2022 the personal overdue debt had risen to 382 billion euros. The explanation for the discount issues the revival of outdated preparations for money owed to AADE inside 2023. In the mean time 9.4 billion are organized. Nevertheless, this inclusion doesn’t imply that the debt has been repaid however that it has been organized in a regime of 120 or 72 installments . However, the 9.4 billion that haven’t been paid however settled are proven as repaid to cut back the unconsidered debt to AADE.
From there to the debt iceberg that threatens to collide with Greek society are added the obligations of the debtors of the banking system (“purple”, regulated and conscious) which quantity to a complete of 220 billion euros.
They suffocate society
On this mountain of debt, the dominant place is occupied by the “purple” loans which have been transferred to darkish funds based mostly primarily in Eire. Based on the info of the Financial institution of Greece (Monetary Stability Report), by the top of 2023, 70 billion euros of “purple” loans are within the arms of the funds, who purchased them in opposition to a lentil board (at 3-15% of their nominal worth) and with the assure of the Greek authorities, totaling 18 billion euros. This package deal of state ensures that’s in peril of being written into the general public debt was made to save lots of the Greek banks, which have already acquired 44 billion euros within the memorandum period to “save” them. Within the 4 Greek systemic banks (Ethniki, Eurobank, Alpha, Piraeus) there are one other 12 billion “purple” loans, of which 10 have been given to servicers (Intrum, DoValue, and so on.) for assortment.
In complete, the servicers management 80 billion “purple” loans, inside which there are mortgage loans for 700,000 properties, with a complete worth of 45 billion euros. Of those properties which might be auctioned little by little in order that their worth doesn’t fall because of oversupply (in Spain for a similar cause, the oversupply of properties because of auctions, properties even bought for 1 euro), about 50% concern residences.
Within the complete of 80 billion euros of “purple” loans managed by the servicers, the “purple” loans of companies are of the order of 45.6%, whereas housing loans quantity to 31.9% and shopper loans to 22.5%. In absolute numbers, enterprise loans quantity to 36.5 billion euros, housing loans to 25.5 billion euros and shopper loans to 18 billion euros. Nevertheless, the loans held by the funds embody roughly 10 billion which have been settled and settled in installments. This portfolio is being ready to be repurchased by the 4 systemic banks, proving their direct connection to the funds whose proprietor we have no idea and can’t know due to Irish regulation which hides the true shareholders of a capital firm.
Unbelievable shame
Based mostly on the info of the net public sale platform, round 50,000 houses of “purple” debtors have gone below the hammer since Could 2022 till at the moment. About 25,000 extra residence auctions are anticipated to be added throughout the subsequent twelve months.
That is the place the unusual factor is available in: after the Mitsotakis authorities, with the help of the Supreme Courtroom, dispossessed the debtors and after abolishing the establishment of the safety of the primary residence, it gave the funds that function via the servicers the best to unabashedly speculate. Any safety that exists issues the weak, i.e. these with an annual revenue starting from 7,000 (single) to 13,000 euros (married with two youngsters).
Based on the info of the servicers, the preparations of the loans which have been profitable result in the loans secured by a property price as much as 120,000 euros in a haircut of 40-45% of the nominal worth of the loans (not together with the curiosity that runs inexorably). If we boil it all the way down to absolute numbers, we see the magnitude of the swindle that goes to “redneck” debtors who do not need to lose their residence.
So suppose there’s a mortgage with a nominal worth of 100,000 euros that was purchased for 15,000 euros from an Irish fund with an unknown proprietor. If that is minimize by 45%, the borrower can pay €55,000 divided into month-to-month installments and compounded with some curiosity. This in observe implies that the potential revenue for the darkish proprietor funds on the €10bn regulated loans (even assuming they have been all bought at 15% of face worth) is over €4bn.
They like auctions
Regardless of the obscene earnings they make whereas having the Greek public assure of a complete quantity of 18 billion euros generously given by the Mitsotakis authorities from 2019 with the “Heracles” I & II packages, the servicers want the answer of auctions. As could be seen from the info of the out-of-court settlement platform, in dozens of circumstances funds and servicers reject the settlement proposed by the platform’s algorithm. The issue is discovered within the non-vulnerable house owners who utilized to be included within the extrajudicial mechanism established by the Mitsotakis authorities. Inside the first quarter of this yr, 19,320 new purposes have been submitted (with out distinguishing between weak and non-vulnerable debtors).
Based on cross-referenced data, non-vulnerable debtors who personal actual property within the overwhelming majority of them don’t benefit from the association proposed by the algorithm as a result of it’s denied by the fund via the servicer. In truth, the legislative trick Mitsotakis doesn’t give the best to the borrower who requests to enter the regulation to know the rationale why the proposal of the algorithm was rejected (in observe it recommends the proposal of the state, provided that the system is aware of the monetary state of affairs of the borrower and prepares the proposal in complete money owed to people and the state).
So, in an effort to serve the darkish funds, Mr. Mitsotakis has not solely… stripped the debtors of their tooth, not solely has he given every thing to the banks and funds which might be making obscene earnings with the assure of the Greek state, however as well as he’s additionally depriving the state of revenue because the out-of-court settlement (240 installments) contains the money owed to AADE and insurance coverage funds.
See additionally: Once more on the mercy of the servicers 1000’s of debtors via a hidden provision by the Mitsotakis authorities
Hatzidaki’s secret modification with favors in favor of the servicers within the Parliament
The funds stay with out VAT, however nobody bothers them
They unleash a brand new tsunami of auctions for the sake of funds
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