2024-09-15 08:32:27
The competition for the creation of the Real Estate Acquisition and Re-leasing Agency has entered the final stretch, in order to close the last outstanding part of the new bankruptcy code which focuses on
According to “N” sources with knowledge of the procedures, by the beginning of October the notice for the submission of binding offers will have been issued by the Ministry of National Economy & Finance. It is noted that there has been a long-term competitive dialogue in which interested funds participated, while non-binding offers were submitted by the following four: Fortress, Bain, CRC and Kaican Hellas in a joint venture with Beaumont.
In order to proceed with the implementation of the Agency – which has been significantly delayed in relation to the country’s commitments in the context of the post-memorandum evaluation – the Ministry of the Interior issued the relevant ministerial decisions that regulate critical issues for investors, such as the integration process, the recovery of revenues by the Body and the related charges for procedures such as legalizations etc., among others.
Poor prospects
The venture’s prospects for success, however, appear slim to none, given the small perimeter of eligible red-handed debtors. According to the data of the General Secretariat of the Financial Sector and Private Debt Management, so far only 185 debtors have received a certificate of vulnerability in order to join the Intermediate Program.
It is recalled that the first home support initiative in question was implemented in 2022, following the “Bridge” programs implemented during the pandemic to protect borrowers from first home auctions. The Interim Program was implemented as a temporary solution until the implementation of the Agency was completed.
Even with an offer
Although the process for the establishment of the Agency will proceed even if a valid binding offer is submitted, the chances of this happening are extremely limited. Although it is not a condition for joining the Agency that the borrower has previously joined the Intermediate Program, it is nevertheless indicative of the intention to participate on the part of vulnerable – or perceived as vulnerable – borrowers.
The meager participation in the Interim Program has in any case created an impression on the perimeter of the truly vulnerable borrowers since it provides for subsidizing the installment of the red loan that has been regulated.
The condition, however, that the borrower gives access to his bank data seems to have acted as a strong disincentive for taking advantage of this possibility, combined with the commitment of those who join to hand over the ownership of their residence to the Agency (when it is established).
Exercise doesn’t work
When asked by “N”, market sources, who are close to potentially interested investors, are categorical, explaining that with such a small scale of properties, the exercise “doesn’t work”. At the first stage of approaching investors from the ministry’s side, the same sources claim, the estimate was that the properties to be purchased by the Agency would amount to tens of thousands. “Only on this scale could the investment stand”, they estimate.
However, the warm response of vulnerable borrowers to the out-of-court mechanism is of interest, especially after the new provision by the Ministry of Finance for mandatory acceptance of the arrangements produced by the algorithm for vulnerable over-indebted households. According to the August figures, since the mandatory entry into force, a total of 1,162 vulnerable citizens have received regulation and 72 have made use of the prepayment measure, achieving a suspension of auctioning through the regulation.