Bank loan

Monitoring loan repayments | eKathimerini.com

The Central Credit Register (CCR) to be created at the Bank of Greece in the form of a data system recording in detail the repayment record of each loan issued will be the second instrument that the Ministry of Finance is preparing for the close monitoring private debt in the country.

The CCR will complement the Credit Reporting Authority, which, as Kathimerini wrote on Monday, will collate information on all private sector debt to the state, in order to have a complete record of transaction behavior and to facilitate sound financing of the economy.

Contributing data to the CCR will be all credit entities licensed and supervised by the BoG and providing credit over €2,000 to individuals/consumers and over €5,000 to small and medium-sized enterprises, corporations, cooperatives and traders. It will also cover all types of financing (personal loan, consumer credit, business loan, factoring, mortgage, etc.).

The project will be funded by the Greece 2.0 grant scheme. According to his description, the Greek credit system has too many non-performing loans, while the information available on the credit profiles of businesses and individuals is poor in quality and quantity. As a result, the banking system is not able to sufficiently support the growth of the economy through credit expansion.

The central credit registry will complement both the existing registry of unreliable bank borrowers (Teiresias) and the proposed credit reporting authority. Access to the CCR will be granted to investors interested in participating in securitisations, either via the Hercules program or via the purchase of loan portfolios from banks or funds, upstream of the development of the secondary market for non-performing loans.

In total, private debt in Greece exceeds 250 billion euros. Of this amount, approximately 111 billion euros are due to the tax authorities, 41 billion euros to social security funds and an additional 98 billion euros to banks and funds.