The Bank of Piraeus will forgive its clients the debts under € 20,000 to alleviate the crisis

The Bank of Piraeus will forgive its clients the debts under € 20,000 to alleviate the crisis

  • It is the first Greek financial institution to take a step to alleviate the situation of the clients under the government’s humanitarian aid program.
  • All of these people will also be frozen their mortgage loans and will be exempted from paying interest during the period of validity of the law.
  • The entity said that this measure aims to show its commitment to meet the current needs of the economy.
  • All those who do not receive aid from other European or regional initiatives have the right to benefit from this program.
Grecia

A man places Greek flags in a pavilion. Yannis Kolesidis / EFE

The Bank of Piraeus was the first Greek financial institution on Thursday to take a step to alleviate the situation of the most needy customers, by canceling the debts of less than 20,000 euros of all people who have taken refuge in the government’s humanitarian aid program .

In a statement, the bank said it eliminates 100% of the total debt of up to 20,000 euros for all consumer loans and credit cards.
This provision is open to all those who have accepted the aforementioned humanitarian aid program approved by the Government of Alexis Tsipras for the most needy.

The bank reported that all of these people will also be frozen their mortgage loans and will be exempted from paying interest during the term of this law, initially scheduled for one year.

 

The entity said that this measure aims to show its commitment to meet the current needs of the economy and society, and help a new start.

Customers who can not benefit from the law will be offered solutions

For debtors who can not benefit from the provisions of that law, but have outstanding payments with the bank, the lender will propose solutions to restructure their debt .

The cancellation will affect thousands of customers

The Bank of Piraeus immediately posted on its website the conditions that accompany this offer and noted that requests may be made in any of the 803 branches as of May 21 .

Bank sources cited by local media pointed out that the volume that can be condoned amounts to several tens of millions of euros and affects several thousand customers .

At the same time, this measure opens the way for other banks to offer similar programs.

The Greek government anti-poverty program is intended for a total of 153,000 families who can apply for rent, electricity and food aid . According to Social Security data, only on the first day of the request for humanitarian aid, on Monday, 8,500 requests were received.

Only for those who receive other aid

All those who do not receive aid from other European or regional initiatives are entitled to this program. Specifically, it is expected that 30,000 people will be able to benefit from housing assistance, who will receive between 70 and 220 euros per month . Applicants can also request 300 kilowatts of free electricity per month and a bank card that can be used only for the purchase of food and that the Government will recharge at the beginning of each month.

For housing assistance, 30,000 people will be able to benefit, who will receive between 70 and 220 euros per month.

The initiative can be chosen by those who last year declared to the Treasury an annual income of less than 2,400 euros for a single-person household and 6,000 euros per year for a family with four children . In the case of rental assistance, the value of real estate property should not exceed 90,000 euros if it is a house of one person, or 200,000 euros in the case of a family.

A small important step, not definitive

The deputy minister of Social Solidarity, Theanó Fotíu, recently admitted that the law approved by the Greek government ” does not solve the humanitarian crisis” , but added that it is a ” small important step ” and that families with children will have priority.

According to statistics agency Elstat, in mid-2014 23.1% of the Greek population lived below the poverty line and there was 28.8% of child poverty. In the six years of crisis, income in Greece has fallen by an average of 30% , unemployment has skyrocketed from 9% to 26%, three million people have run out of health insurance and gross domestic product has fallen by 25%. % .