Greek Finance Ministry considers lifting ban on repossession of primary homes

The Greek Finance Ministry’s plans to lift a ban on the repossession of primary homes are threatening to throw the Greek government into another political crisis.

The government is contemplating a plan to partially lift the ban from early 2014 and apply criteria that include the financial situation of homeowners, the size of the mortgage and the homeowner’s debt.

The ban on auctions of main residences valued up to EUR 200.000 was enforced in 2012 and expires at the end of 2013.

Ruling New Democracy MP’s have spoken out against the lifting of the ban and have already warned that such a measure will never be voted into law by Parliament.

Evangelos Venizelos, the leader of junior coalition partner PASOK, said in an interview Tuesday that “the ban could not be lifted and the homes of poor people could not be put in danger as this would be of good to nobody, not even the banks”.

Greece’s international lenders however have a different opinion, as it has been reported that the troika will push for the ban to be lifted when talks on the country’s progress in its adjustment program resume in September.

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(Photo, of Athens, Greece: Clive Leviev-Sawyer)