Filenews 3 July 2021 - by Theano Thiopoulou
In the search for consultants who will support the conversion of KEDIPES into a bad bank is the Ministry of Finance since yesterday, with the announcement of tenders, on the basis of which the deadline for receipt of applications expires on 2 August.
The competition concerns a public contract and the estimated value is €151,000. The ministry had asked the parliamentary Finance Committee to release a €180m budget for the 2016-2020 financial year. for the purchase of external legal consultancy services, which will prepare a study in relation to the conversion of KEDIPES into a bad bank.
The Ministry has initiated contacts with the relevant Directorates-General of the European Commission to examine precisely the possibility of the development of KEDIPES into a national asset management company. The main reason for its development into a bad bank is because it will be able, under its new legal regime, if and if approved by the European Commission, to be able, subject to conditions, to proceed with the purchase of red loans by one or more credit institutions or by other credit-buying companies, amounting to approximately between €1 billion and €1.5 billion.
Since the evolution of KEDIPES into an asset management company will be accepted by the EU, it will be able through the asset management assets from its operations to purchase red loans from credit companies for a period of three years, provided that the loans were serviced during the period 31 December 2019. They also had secured the 1st residence or the 1st professional residence with a maximum market value of €350,000 and that they will be purchased at their market value, on the basis of independent estimates.
Another element that will characterize the evolution of the KEDIPES, if and when the ministry's plan goes ahead, is to implement the plan for the protection of the property, with the practice of paying rent instead of instalments.
The mortgage-to-rent scheme will be aimed at vulnerable sections of the population who cannot afford to pay the minimum instalment to financial institutions. It is stressed that financial institutions cannot implement such a plan because, under supervisory rules, banks cannot keep real estate on their balance sheets for more than three years. KEDIPES will acquire the property at a price of around 60% of the market value and in parallel with the acquisition of the property a contract will be signed, according to which the rent amount will be fixed at 2% to 3% of the market value of the property.
