Bank of Greece issues decision on property foreclosure procedures for creditors

The Bank of Greece on Thursday issued a decision outlining the procedure and criteria for determining a debtor's maximum debt repayment capacity and the amount that creditors can receive in the case of a property foreclosure in the framework of the process outlined in the Katseli law for the protection of mortgaged primary residences.

The central bank's decision was published in the government gazette and will go into effect from January 1.

The BoG said its decision was based on current best practices for evaluating debt repayment capacity employed by other EU member-states and the assessment of a debtor's ability to service their debts to credit institutions, as well as the need to develop and adopt evaluation methods and indexes in harmony with those of international and European standards for determining the value of property, especially those used as residences.

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