Among the areas of concern highlighted in the European Commission’s second post-programme surveillance report are the household insolvency law and debtor protection schemes, which are examined in the context of the overall financial system stability and the ongoing efforts to reduce the stock of Non-Performing Exposures (NPEs) from the systemic banks.
The European Commission issued on Wednesday the second review in the content of enhanced post programme surveillance of Greece.
The government is waiting for the European Commission to publish on Wednesday its report assessing the state of play with the reforms Greece has committed to carrying out as part of the second post-programme review.
The Greek government is hoping to table in Parliament early next week the new bill for the protection of primary residences from foreclosures after another round of talks with local bankers on Thursday.
It appears that the Greek government still has work ahead of it to refine the proposal for the protection of primary residences as the institutions have a number of objections.
Comments made to Reuters by European officials regarding the possibility of eurozone finance ministers delaying a decision to disburse up to 750 million euros to Greece on March 11 have raised concerns in Athens, where the Finance Ministry is waiting for a response from Brussels to its proposal for a new scheme to protect primary residences from foreclosure.
The government and the banks are waiting for a response this week from the institutions and the European banking supervisory authorities regarding the proposal for the framework that will succeed the Katseli law.
The government and Greece’s bankers appear to have reached an agreement on the framework to protect primary residences from foreclosure when the extension to the Katseli law runs out at the end of February.
The Greek government and local banks are reportedly making progress in their discussions about how to replace the Katseli law, which expires at the end of the month, with a new framework for protecting primary residences from foreclosure.
Talks between banks and the Greek government on the primary residence protection framework are due to continue this week, with the latter being left under no illusions by its European lenders that it will have to move quickly on this and a number of other issues over the next few weeks if the March 11 Eurogroup is to give the green light for further debt relief measures.