The discussions were adjourned at 5 am. The Greek side spoke of progress but the two main points of difference between the two parts remain unsolved. The first is the so-called “red loans” (loans which have stopped being paid, mainly due to the crisis) and the possibility of selling them to distress funds. The second is the release of foreclosures for the primary residences of those debtors, which were under protection until now.
The president of the Eurogroup, J.Djisselbloem stated that a lot of progress has been achieved but the EuroWorkingGroup would have to meet a day later, on Tuesday in order to give the green light for a 12bn. euro installment towards Greece.
Foreclosures
Both sides agree that new laws must be passed concerning the foreclosures of the primary residences of those debtors who have stopped paying their loans.
The Greek government stresses that its goal is to protect up to 60% of the low income homes and that “there will be measures for the protection of households who were good debtors but are now unable to continue to pay their debts off”. At the same time, the government states that those who take advantage of the situation in order to avoid paying while they can must not be protected.
The institutions will remain in Greece even after the end of the negotiations. Beside the 10bn euros which are to be given towards the recapitalization of the Greek banks and the 2bn euro as a first installment of the latest deal between Greece and its creditors, the two sides must come to an agreements about the next “package” of 1bn euros. Last but not least is the National Budget which must be presented to the Greek parliament until November 12.