The effective operation of electronic auctions in 2018, with a satisfactory volume of auctions through the new system in the two months January – February, is a necessary condition for the institutions, while the ECB has warned banks that otherwise there will be stress testing.
According to newspaper «Kathimerini», the banks have pledged to hold at least 600 to 700 e-auctions per month on January and February, ensuring that the market is stable. Bank officials note that the big issue is not just the launch of electronic auctions, which has so far been shifted from week to week and from month to month, but especially to satisfactory transactions, otherwise the tool will be meaningless.
The institutions have requested at least 600-700 auctions in the first months of the new year, with a gradual increase in volume after the second half of the year, while in the last quarter of 2018 the banks will have to hold 10,000 auctions with a total number of 18,000. . This is a triple target of the auctions held in 2016 (5,641 estates and 827 properties) However, this level is 3 times lower than the volume of auctions (58,849) held in 2008. Bank officials note that there should be a significant increase in the volume of transactions as in the last two years in practice the auctions have «frozen», however the increase will it must be gradual so that there is no shock in the real estate market. A large pressure on prices would have a serious impact on banks’ balance sheets, as the value of collateral – ie the valuation of real estate – would be reduced, forcing them into additional provisions.
Banks believe that the boom in non-performing loans, which currently stands at 100 billion euros, is largely the result of encouraging misconduct. It is no coincidence, they note, that the biggest debts are in the banks and in PPC, where in recent years there has been complete immunity for those who did not pay their debts, a situation that many «strategic» defaulters took advantage of. In the name of the weak, the parties promised «seismicity» and favorable arrangements, which many hoped would be exploited.
The Law 3869/2010, which came into force in the summer of 2010, was a bomb in the foundations of banks and in transactional morals, offering legal asylum to many who, while they could, stopped serving their obligations. It was preceded by a horizontal ban on auctions for six months, enacted by G. Papathanassiou and the Government, a ban that was constantly being extended, protecting everyone.
However, the issue of auctions and the adoption of electronic auctions has become a central issue in the third evaluation, with the institutions having made it clear that in the event of a new engagement, then the evaluation process will automatically be suspended.
Source: site dikaiologitika.gr
