Hercules Program: Risks and Proposals for Debt Management

Servicers have expressed concerns regarding the management of private debt and the risks to the implementation of business plans for securitizations under the Hercules Program. A significant problem is the lag in recoveries through the liquidation of assets.

The greatest risk comes from the pilot trial in the Areios Pagos (Supreme Court) regarding the calculation of interest on Katseli loans, which could affect securitizations by €1 billion.

Servicers' proposals include accelerating liquidations and creating a bad bank for loans to vulnerable debtors. The companies manage loans under the Hercules Program with a legal claim of €104 billion and a supervisory balance of €44.5 billion, covering 483,000 debtors.

Loan adjustments amount to approximately €8 billion with delays of less than 90 days, affecting approximately 117,700 debtors. With the changes to the Out-of-Court Mechanism, a protection framework has been created for vulnerable debtors and Persons with Disabilities (PWD).