Milena Apostolaki brings to Parliament the issues related to the upgrade of the IRIS payment system, the reduction of transaction costs for citizens and the control of opaque bank fees and commissions.
To expand IRIS system throughout the market and the need to introduce measures to prevent and eliminate excessive charges and bank supplies she focuses her question on the Minister of the National Economy and Finance, Kostis Hatzidakis, the MP for the Northern Sector of PASOK and head of the Sector for Banks, Private Debt – Loan Protection, Milena Apostal.
The PASOK member of parliament accuses the government of delaying the mandatory market-wide implementation of the IRIS system, which, she says, would have given banks a lot of time “willingly or in unknowingly” to further increase their fees.
Simultaneously occurring he notes that the Government it is indeed beyond all control of a series of charges and commissions as well and from any legislative initiative to protect citizens and improve openness in banking transactions.
“The way the banks operated resulted in the creation of a cartels in the banking system and as a result earn millions of euros and cause incomprehensible harm to the citizens with their high fees” emphasizes Mr. Apostolaki in her question and she asks,among other things,Kostis Hatzidakis if the Government intends to limit the -transaction to change businesses through the IRIS system as well as whether it will take measures to prevent and eliminate opaque and unfair charges and fees in interbank electronic transfers in loan agreements or credit.
Milena Apostolaki’s detailed question:
To the Minister of National Economy and Finance Konstantinos Hatzidakis
Topic: Upgrading the IRIS payment system – Reducing citizens’ transaction costs – Controlling opaque bank fees and charges.
Minister, Mr
The IRIS payment system facilitates daily transactions for millions of citizens and businesses, who are or else burdened with inconsistent, inconsistent fees. Because of this very reason,PASOK planned to increase the 500 euro limit that is in force today in the IRIS payment system.
On 4.12.2024 the DIAS SA Board of Directors will decide to establish a separate portal for two of the IRIS products. It was decided that the daily limit for direct money transfers between friends would be 500 euros and that the daily limit for direct payments to freelancers/individual proprietors would also be 500 euros. Before the statement from the Governor of the Bank of Greece was given in his television interview (28.11.2024, ERTnews) in which he stated that the 500 euro limit in IRIS can be increased, because IRIS is a triumphant system. and there is no need for a new payment system. He saeid typically “We have invested in it (IRIS), it is going very well, so we have to see what are its problems, fix them, expand it and make a national payment system of”. Even tho this initiative is moving in the right direction, it is indeed not enough to significantly reduce the cost of transactions required by citizens.
Minister, you promised in your previous statements that IRIS will be mandatory for the whole market in the Spring. You recently repeated this promise in your public intervention.
but so far you have not presented any plan as to how you intend to implement the above notice. By your decision to delay the mandatory IRIS for the entire market, voluntarily or involuntarily, you are giving the Banks enough time to further increase their fees. The Government refrains from any control over thes fees and commissions, just as it refrains from any legislative initiative to protect citizens and improve transparency.
All this at a time when only a year ago, on 21.12.2023,the Competition Commission proceeded to impose fines on systemic banks of a total of 41,756,180.10 euros for violating the terms of free competition in the individual markets of retail and business banking , issuing and accepting cards. , and also the markets of interbank systems, payment services and electronic transactions. As a result of the way the Banks acted, cartels were created in the banking system and as a result they earned millions of euros and caused incomprehensible harm to the citizens with their high fees.The decision in question, which took 4 years to issue, as the audit began in November 2019, ended the dispute resolution process, ie the Banks accepted the violations they had committed against a smaller fine, which they ”care” about their 4 billion net profit in 2023.
Mr. Minister, already with the no. first 1108/2024 in my question I pointed out that the Banks continue to offer challenging low deposit rates,and that the interest spread between new deposits and loans increased to 5.33 percentage points, due to
which has already launched a new investigation by the Competition Commission.To my question, a month after submitting it, you have not responded. So far, you have not made any initiative regarding the exorbitant fees and the almost zero interest rates on deposits, except that the Prime Minister has hastened to ensure that he is not going to tax the profits of the Banks, which he refuses to PASOK’s proposal to tax them.
Based on the above, ask Mr. minister:
1) When will it happen? implementation of IRIS is mandatory for all firms to reduce transaction costs?
2) The Government intends to undertake it origin so that the transaction limit through the IRIS payment system for business transactions being separated from the other two as determined by the DIAS Board decision? What will be the position of the Government regarding the limit of transactions with businesses?
3) What measures dose the Government intend to take for the prevent and eliminate excessive charges and feesin electronic interbank transfers and existing or new payment systems? Why to this day does the Government refuse to take measures, without paying attention to PASOK’s proposals, which are needed as a common acknowledgment?
4) what measures does the Government intend to take for the accelerate the imposition of fines and decisions of autonomous supervisory authorities and what interventions does it intend to make to control opaque and unfair charges and commissions in bank accounts (eg management costs) but also in loan or credit agreements?
5) What measures does the Government intend to take for the better supervision of banks and dealing with imperfect if not dirty competition in the Greek banking system?
What are the main benefits of upgrading the IRIS payment system for consumers and small businesses?
Interview Between Time.news Editor and Milena Apostolaki on Upgrading the IRIS Payment System
Time.news Editor: Good morning, everyone, and welcome to our engaging discussion on a pressing issue affecting our financial landscape—transaction costs and banking clarity. Today,we’re blessed to have wiht us Milena Apostolaki,a member of Parliament representing PASOK and an astute advocate for the upgrade of the IRIS payment system. Welcome, Milena!
Milena Apostolaki: Thank you for having me! it’s a pleasure to be here and discuss such an important topic.
Editor: To kick things off, could you explain what the IRIS payment system is and why it’s significant for citizens and businesses?
Apostolaki: Absolutely. The IRIS payment system is designed to facilitate daily transactions for millions of citizens and small businesses by providing a more efficient and cost-effective method for electronic payments. However, currently, many users face issues with inconsistent and high fees attached to these transactions, which is what we aim to change.
Editor: You recently raised concerns regarding the government’s delay in implementing IRIS across the entire market.What implications do you believe this has on consumers?
Apostolaki: Delays in implementing the IRIS system allow banks to exploit the situation.without mandatory adoption, banks have had the prospect to increase their fees—either knowingly or unknowingly. This not only burdens consumers with higher costs, but it also creates a lack of transparency in what they are paying for.
Editor: You mentioned issues surrounding the opaque bank fees and commissions. Can you elaborate on that and the potential impact on everyday citizens?
Apostolaki: Certainly. Opaque fees lead to confusion and mistrust among consumers. Many citizens are unaware of the charges associated with their transactions, which can sometimes amount to significant sums over time. The lack of clarity in these charges contributes to a perception of collusion—a sort of cartel behavior among banks. This is why it’s essential to implement regulations that protect consumers and enhance transparency in the banking sector.
Editor: In your questions directed at the Minister of National Economy and Finance, Kostis Hatzidakis, you address plans to increase the transaction limit within the IRIS system. How do you envision this change affecting consumers?
Apostolaki: Increasing the transaction limit is vital for both personal and business transactions.As it stands, a 500 euro limit for direct transfers can be quite restrictive for many users, especially freelancers and small business owners. By raising this limit, we can alleviate some financial pressures, making it easier for people to transact without incurring excessive fees.
Editor: You’ve called for legislative initiatives to restrict unfair charges. What kind of measures do you think are necessary to create a more equitable banking environment for consumers?
Apostolaki: We need comprehensive legislation that not only caps transaction fees but also mandates disclosure of all charges upfront. We must ensure that customers have access to clear and transparent data regarding the services they are utilizing. Additionally, establishing a regulatory framework to oversee interbank transactions will help hold financial institutions accountable and encourage fair competition.
Editor: You alluded to the need for a more transparent banking system. With the current landscape, do you believe the government has the political will to drive these changes?
Apostolaki: It’s certainly a challenge, but the concern for citizens must take precedence. The government has a duty to act in the best interest of the public, and it is crucial that we push for these reforms, despite potential resistance from banks.Change is necessary, and with enough support from the public and other lawmakers, we can achieve it.
Editor: Before we conclude, what message would you like to convey to citizens regarding their role in advocating for these changes?
apostolaki: I encourage citizens to stay informed, voice their concerns, and demand transparency from their banks. Understanding your rights and the fees associated with your financial transactions is crucial. Change begins with raising awareness, and together, we can advocate for a fairer banking system.
Editor: Milena,thank you for your insights and dedication to improving our financial systems. It’s been a pleasure speaking with you today!
Apostolaki: Thank you for having me! It’s critically important that we all engage in these discussions to shape a better future for our economy.
Editor: And thank you to our audience for joining us. Stay tuned for more discussions that matter!