PASOK Proposes 10+1 Measures for "Red Loans" Ahead of Thessaloniki Fair

PASOK, under the banner "We are changing the rules," has unveiled a detailed legislative proposal to tackle private debt, emphasizing the protection of primary residences and stricter oversight of loan servicers.

The party positions this initiative as a critical response to the pressing issue of private debt, which it deems vital for a large segment of over-indebted households. PASOK aims to offer much-needed relief while simultaneously highlighting its programmatic strength and differentiating itself from the governing party and other opposition forces.

The proposed 10+1 measures include restoring primary residence protection for values up to €320,000 for families, a new 120-installment plan for public debts up to €500,000 with significant reductions in surcharges, and mandatory, viable out-of-court settlements with creditor participation.

Further provisions target loan servicers with strict rules and penalties for arbitrary actions, grant borrowers the right to a final settlement before loans are transferred to funds, and shield against forced execution by allowing compensation or cancellation of claims if the Code of Conduct is violated.

The plan also addresses loans in Swiss francs with a proposed 2/3 loss distribution to creditors and 1/3 to borrowers, rewards consistent debtors, and protects essential agricultural land from liquidation, aiming for a comprehensive and equitable approach to debt management.