Banks Ease Pressure on Greek Hoteliers with Heavy Debts
Greece’s national economy ministry last month urged banks to initiate a program of “good faith” concerning all rules of law that concern old loans owed to them by Greek hoteliers.
The circular refers to procedures that must be followed by banks in order to deal with past due debts and the criteria for the final solution of differences and the closure of unresolved issues. Within the same circular, the ministry asks banks to be as lenient as possible concerning the amount owed and to facilitate hoteliers with as much time as possible in the settlement of any remaining debt.
In particular, under the new rule of law it’s foreseen that the new base of calculation will take into account the installments already paid when making the calculation of the total past due debt, provided it was due up until December 31, 2000.
With regards to the bank expenses as a result of the new rules, the ministry says these should not be deducted from payments hoteliers have already made to banks.
Concerning debit and credit accounts as the base of the calculation of the amount owed, the debt is taken under consideration as it stood a year after the payment of the amount of the last loan credit without interest on deferred payment or compound interest and other expenses.
The new rules of law concerning long-standing hoteliers’ debts to banks comes at a time when the tourism market in general faces a severe financial problem.
Leading business people in the sector stress that despite a radical reduction in interest rates, a low inflation rate and much improved loan practices, the tourism sector faces a very difficult period and many businesses face financial ruin.
All of the above, coupled with other factors, they say, forces the tourism industry to enter a period where they must continue to enact modernization plans. This, they say, will result in the reformation of the market which will include all tourism professionals realizing the dire need to take new initiatives.