The government has decided to revise its plans regarding the controversial lift of a temporary ban on primary residences in an effort to bring some calm to troubled coalition parties New Democracy and PASOK.
The Prime Minister Antonis Samaras and Vice President Evangelos Venizelos decided to extend the ban on auctions, as per the PASOK proposal. The two political leaders caved in as they were worried that the controversy surrounding the auctions could cause a number of New Democracy and PASOK MPs to vote against such a proposal in Parliament.
Even though this is a positive development for homeowners, a lot will be determined by the upcoming talks and negotiations with the troika in November, a few weeks before the deadline for the extension of the ban.
The main line is to protect the residence of financially vulnerable homeowners who have been hit the hardest from the crisis and are unable to repay their loans. To that end the PM explained that the government is devising a regulation framework that will ensure the protection of vulnerable homeowners and housing financing, while addressing a number of exploits and loopholes available under current legislation.
Rumors have also suggested that the government is considering establishing three categories of borrowers, in order to protect the primary residence of the financially weak, the unemployed and people with special needs. There have also been thoughts for a regulation to extend the repayment period without penalties and the possibility of a partial loan haircut.
These favorable regulations will not be available to those who with high incomes, large bank accounts and other real estate assets, beyond their registered primary residence. Cross checks with bank and tax services will also indicate whether a borrower outright refuses to pay loan installments, despite having the funds.
Furthermore, the regulations for entrepreneurs and traders will likely be different. There has also been a discussion about reducing the maximum objective value of a primary residence in the auction ban from 200,000 to 160,000 euros or less.
Meanwhile the government now has to deal with teacher union OLME, which is threatening to call a strike at the start of the new school year, in response to the suspension and mobility schemes. Despite assurances from the Minister of Education Arvanitopoulos that not a single teacher will be dismissed, the union appears unconvinced and determined to go through with a strike.
