The Greek government is reportedly in the “final stretch” of negotiations
The Greek government is reportedly in the “final stretch” of negotiations with systemic banks in the country to resolve a pressing issue involving tens of thousands of mortgages and loans in the country pegged to the Swiss franc.
The practice of Greek banks issuing – amid a then vigorous ad campaign – mortgages pegged to the Swiss franc before an international credit crisis in 2009 initially appeared as attractive for borrowers in the country.
Most of these types of loans were granted between 2006 to 2009 and took advantage of a lower interest rate offered at the time, as compared with euro-pegged interest rates.
However, the euro’s subsequent depreciation against the Swiss franc, which was compounded by what was essentially a Greek economic depression – punctuated by three institutional bailouts (2010-2018) – caused tens of thousands of mortgagors and guarantors to despair. The latter saw mortgage and loan balances and monthly payments balloon when francs tallies were converted into euros – the currency in which borrowers were paid or conducted business. The economic downtown had also sliced away at jobs, salaries and turnover.
According to the latest reports, some 70,000 mortgages and business loans issued by Greek banks are pegged to
Content Original Link:
Read Full article form Original Source OIKONOMIKOS TAXYDROMOS
" target="_blank">Read Full article form Original Source OIKONOMIKOS TAXYDROMOS
