Greeks banks have decided to offer up to a 90 percent haircut on credit card debt and non-performing loans, which they believe there is no possibility of paid by debtors.
The value of non-performing loans of Greek banks that have not been serviced for years or many months is around two billion euros.
According to a report in the daily Eleftheros Typos, banks one after another are sending messages to debtors, asking them to settle their debts before they are sold to investment funds.
In this manner, delinquent debtors can relieve themselves of the greater part of their debt, which is usually the interest paid on the loan, and they can pay off the rest with smaller installments.
The National Bank of Greece is offering debtors a 70 percent haircut on the initial capital, with the total debt relief with interest reaching 90 percent.
