INFORMATION BOOKLET FOR BORROWERS IN FINANCIAL DISTRESS

as provided for in the Code of Conduct pursuant to Law 4224/2013, as in force

1. Key Terms and Definitions

Loan

It refers to any debt arising from any form of credit granted by the financial institution.

Cooperative Debtor

Defined as a borrower who, in relation to their creditors:

  • Provides complete and up-to-date contact information to the creditors (e.g., telephone number, email address, etc.) and appoints a relative or trusted person as an alternative contact in case they become unavailable.

  • Is available for communication with the creditor and responds sincerely and clearly to calls and letters, by any appropriate means, within 15 working days.

  • Fully and honestly discloses information regarding their current financial situation to the creditor, either within 15 working days from the date of any change or within 15 working days from the date such information is requested by the creditor.

  • Fully and honestly discloses to the creditor any information that may significantly affect their future financial situation (e.g., loss of ownership of assets, notice of dismissal, etc.), within 15 working days from the date they become aware of such information.

  • Consents to the exploration of an alternative restructuring proposal with the creditor, in accordance with the provisions of the Code of Conduct.

Non-Cooperative Debtor

Any debtor who does not meet the criteria set out in the above definition of a Cooperative Borrower.

Settlement Solution

It refers to the modification of the contract with new terms for servicing the debt as a result of the difficulties faced by the debtor, which may also include the renegotiation of the total debt.

Final Settlement Solution

It refers to an agreement between the financial institution and the debtor, following assessment and exclusion of a restructuring solution, for the final settlement of the debts under terms which may include the transfer of ownership of collateral or other assets of the debtor, with their consent.

Reasonable Living Expenses

It constitutes an objective method for determining the expenses required to cover the basic needs of households, which include expenditures on food and non-alcoholic beverages, clothing and footwear, housing operation, maintenance and repair of vehicles, use of urban and intercity public transport, repair and maintenance of durable household goods, usual household consumption, personal hygiene and care services, information and education services, postal and telephone services, health services, education services, social protection services, and other financial services. This method can be used as a commonly accepted reference point for assessing the debtor’s ability to service their loan obligations according to their current financial situation.

For detailed information regarding “reasonable living expenses,” please visit the Hellenic Bank Association website and the website of the General Secretariat for Financial Sector and Private Debt Administration (GSFS-PDA) of the Ministry of National Economy and Finance.

2. Exceptions

  • Claims from contracts terminated prior to 01/01/2015 or claims from contracts terminated after 01/01/2015 for which an Arrears Resolution Process (ARP) has already been applied once.
  • Claims against a debtor that do not exceed, in aggregate at the institution level, any of the following thresholds:
    • €1,000 for individual debtors, or

    • €5,000 for corporate debtors classified as micro-enterprises.

  • Claims against a corporate debtor that is not classified as a “micro-enterprise” (i.e., where the debtor’s average annual turnover over the last 3 fiscal years exceeds €1,000,000).

Furthermore, the institution is not obliged to initiate the Arrears Resolution Process (ARP) or may suspend or defer an already initiated ARP. process if any of the following events occur (Section G2 of the Code):

  • The debtor has filed an application for out-of-court debt settlement pursuant to paragraph 1 of Article 8 of Law 4738/2020 (Government Gazette A’ 207/27.10.2020, “Debt Settlement and Second Chance Provision”), or the institution has notified the debtor of an invitation for out-of-court debt restructuring pursuant to paragraph 2 of Article 8 of Law 4738/2020, and until the process is concluded unsuccessfully for any reason.

  • A debt restructuring agreement has been signed which is not subject to the condition of consent by the State or Social Security Entity, and the institution is a secured creditor or derives benefits pursuant to paragraph 2 of Article 5 of Law 4738/2020.

  • The debtor, institution, or another creditor has filed an application for approval of the debtor’s rehabilitation agreement and such agreement has been approved or entered into pursuant to Article 41 of Law 4738/2020 or paragraph 5 of Article 103 of Law 3588/2007, as defined by paragraph 1(a) of Article 265 of Law 4738/2020, and it is binding on the institution.

  • The debtor, institution, or another creditor has filed for the debtor’s bankruptcy and until such filing is rejected.

  • The debtor has filed for inclusion in proceedings under Law 3588/2007 or Law 3869/2010 or Law 4605/2019 or Law 4469/2017, which are pending, or a court decision is pending, or the procedure itself is pending; or the debtor has been included in the procedure of Article 68 of Law 4307/2014, which is pending.

  • Case (e) of paragraph 3 of Article 7 of Law 4738/2020 applies, i.e., the debtor has been convicted by a final judgment for tax evasion, money laundering, embezzlement, extortion, forgery, bribery, acceptance of bribes, smuggling, fraudulent creditor behaviour, bankruptcy, or fraud at the felony level. In the case of fraud, if the injured party is the state or a Social Security Entity, a misdemeanor conviction suffices.

  • The debtor – a legal entity – has been placed under liquidation.

  • Third-party creditors have initiated legal actions to secure the debtor’s debts towards them.

3. Procedure for Handling Overdue Payments and Communication

Stage 1 – Communication

  • Debt overdue for more than 30 calendar days:
    The institution sends a notification (by registered mail) within the next 15 calendar days informing the debtor of their inclusion in the Arrears Resolution Process (ARP), enclosing the present “Information Brochure for Borrowers Facing Financial Difficulties.
    In addition to the relevant information contained in this notification, the institution will invite the debtor to update their current financial status exclusively through the Digital Platform of the Code of Conduct (hereinafter referred to as the “Digital Platform of the Code of Conduct” or the “Platform”), pursuant to Article 39 of Law 4818/2021 and the delegated Ministerial Decision No. 145947 (Government Gazette, Issue B, 5909/10.10.2023), within 15 working days from receipt of the notification, and will inform them of the consequences of any failure to respond.
  • In the event of a new arrears on the same loan:
    The above communication will be repeated only if one year has elapsed since the last notification.

If the 15-working-day deadline expires without a response from the debtor:
The institution shall send, within the next 15 calendar days by registered mail, a notification regarding the debtor’s inclusion in the Non-Cooperative Debtor status and their right to file an objection against such classification.

Stage 2 – Application

At Stage 2, the borrower is required to provide information regarding their current financial situation exclusively through the Digital Platform of the Code of Conduct, pursuant to Article 39 of Law 4818/2021 and the delegated Ministerial Decision No. 145947 (Government Gazette, Issue B’, 5909/10.10.2023).

Specifically, whether the borrower is a Natural Person (individual/freelancer/sole proprietorship) or a Legal Entity, they are required, within a deadline of fifteen (15) working days from receipt of the relevant notification, to access the Digital Platform of the Code of Conduct. Access is provided via the Single Digital Gateway of Public Administration (gov.gr – EΨΠ) and the relevant link (sections: “Property and Taxation” > “Debt Management” > “Code of Conduct”), using the credentials of the General Secretariat for Public Revenue (G.S.P.R.) (taxisnet login).

The borrower must submit the application provided for in Article 39 of Law 4818/2021, along with the required information and documentation regarding their current financial and asset status, by selecting the “Create New Application” field. It is noted that a separate application must be submitted for each portfolio of the respective Financial Institution.

Stage 3 – Evaluation

At Stage 3, the debtor’s financial and asset status is evaluated based on all financial and other information submitted via the Digital Platform of the Code of Conduct, as well as data obtained by the institution from other sources and financial behaviour databases, such as the Credit Bureau (Teiresias S.A.), in order to achieve as objective an assessment as possible:

  • For natural person debtors: The debtor’s financial condition, the total amount and nature of debts, current repayment capacity, financial behaviour history, and projected repayment ability are assessed, taking into account Reasonable Living Expenses as well as other professional, family, and social profile factors.

  • For legal entity debtors classified as micro-enterprises: The collectability of claims is assessed based on the debtor’s current financial status and the prospects of the debtor and the company’s partners.

Stage 4 – Proposal and Counterproposal

  • Once the evaluation of Stage 3 is completed, the institution informs the debtor via the Digital Platform of the Code of Conduct as well as in writing of one or more Restructuring Solutions and/or Final Settlement Solutions deemed most appropriate for the debtor, within 2 months from the date of receipt of the application.
  • Within 15 working days from being informed about the proposed solution(s), the debtor must respond through the Digital Platform of the Code of Conduct by choosing to:

    • accept the proposed solution or one of the proposed solutions, or

    • submit a counterproposal, or

    • reject the proposed solution.

    • In the event the debtor submits a counterproposal, the institution evaluates it within 1 month from receipt and:
      a) either consents to the counterproposal,
      b) or rejects the counterproposal and keeps the original proposal active, providing the main supporting rationale,
      c) or submits a new proposal, which will be final.

If cases (b) or (c) above occur, the debtor must, within 15 working days from being informed of the institution’s final proposal (which may be either the original or the new proposal), choose via the Platform whether to accept or reject it.

If no Restructuring Solution and/or Final Settlement Solution can be found, the Arrears Resolution Process (ARP) is concluded and the institution is entitled to proceed with all lawful actions for the compulsory collection of the debt.

Stage 5 – Objection

At Stage 5, a debtor who has been classified as “Non-Cooperative,” based on the above definitions and the provisions of the previous stages, may, by submitting the relevant Standardised Objection Form, appeal to the institution’s Objections Review Committee (see section 8 below, Objections Review Procedure).

Clarifications regarding the Arrears Resolution Process (ARP) can be obtained through the Special Contact Points (see section 9 below), as well as on the official website www.cepal.gr.

4. Summary Description of Possible Restructuring/Final Settlement Solutions

The company, responding to debtors’ needs to service their debts in a manner compatible with their financial capabilities, has developed a broad range of solutions. Based on the assessment of the financial information submitted through the process, the following options will be considered on an indicative basis:

POTENTIAL RESTRUCTURING OPTIONS

1. Reduced Instalments

A facility is provided to reduce the amount of monthly payments towards the contractual principal and interest instalments (the new instalment amount may be higher or lower than the instalment amount that would correspond to a restructuring of interest only) for a specified short-term period.

2. Interest Rate Reduction

The possibility is offered for a permanent or temporary reduction of the contractual and/or overdue interest rate, as applicable.

POSSIBLE PROPOSED FINAL SETTLEMENT SOLUTIONS

1. Partial Debt Write-off

A partial write-off of the institution’s total claim is provided for, so that the remaining amount is estimated to be manageable for smooth repayment either in instalments or as a lump sum.

5. Personal Data

Transfer

Cepal Hellas Financial Services Single-Member S.A., as the data controller, shall not transfer or disclose Debtors’ Personal Data to third parties, except in the following cases:
a) to companies to which it has partially or fully outsourced the processing of Personal Data on its behalf, in accordance with the Law;
b) to affiliated companies within the meaning of Article 42e, paragraph 5 of Law 2190/20;
c) transfers or disclosures required by law or judicial decision; and
d) transfers necessary for the execution of the contract or for the collection of claims in case of non-fulfilment of contractual obligations by the data subjects (such as transfers to cooperating lawyers, bailiffs, and debt notification companies).

Record Keeping

The minimum retention period for records is set at six (6) years from the date of receipt.

Data Subject Rights

Each data subject retains the rights to be informed, access, and object, as provided by the General Data Protection Regulation (EU) 2016/679, as applicable.

6. Provision of Assistance to Debtors

For assistance and additional information regarding the implementation of the Code of Conduct, debtors may contact:
i. the Special Contact Points during their operating days and hours (see section 9 below),
ii. the exclusive telephone helpline for information on the Code of Conduct at +30 213 088 7643, operating Monday to Friday from 9:00 to 17:00, and
iii. other entities as designated and notified for this purpose in accordance with applicable legislation.

Additionally, please be informed that for prompt service and information on matters concerning the creation and submission or the eligibility requirements for submitting an application via the Code of Conduct Platform, the General Secretariat for Financial Sector and Private Debt Administration (GSFS-PDA) of the Ministry of National Economy and Finance provides the myEGDIXlive service to assist interested parties (natural persons, authorised advisors, or representatives of legal entities) via telephone communication or teleconference/video call.

You can book your appointment with the myEGDIXlive digital service in two ways:

  1. Through the https://myEGDIX.live.gov.gr, which is available 24/7.

  2. Through the GSFS-PDA call centre at 213 212 5730, during working days and hours (08:00 – 16:30).

Call centre staff will assist you in making a reservation for a telephone or teleconference appointment with the myEGDIXlive service on your behalf. The appointment will then take place at the scheduled date and time with the relevant service officers responsible for the Code of Conduct.

7. Indicative Minimum Required Documents

Individuals

Identity Card/Passport, Recent Tax Clearance Certificate, ENFIA tax certificate, Payroll Slip/Pension Statement, Tax Forms E1/E3, VAT Returns (F1/F2), and/or any other relevant documents as may be requested on a case-by-case basis.

Legal Entities

Identity Card/Passport, Recent Tax Clearance Certificate, ENFIA Tax Certificate, Tax Forms E1/E3/E5 & VAT Returns (F1/F2), Published Financial Statements, Certified Auditor’s Report, Trial Balances, and/or any other relevant documents as may be requested on a case-by-case basis.

8. Objection Review Procedure

Objection

If the debtor has received written notification from the institution that they have been categorised as a “Non-Cooperative Debtor,” they may submit an objection within thirty (30) calendar days from the receipt of the relevant notification, using the institution’s Standard Objection Form, at the Special Contact Points (see section 9 below), attaching supporting documents related to the procedure followed for the aforementioned categorisation. The institution’s Standard Objection Form can be obtained by the debtor at the Special Contact Points (see section 9 below) as well as on the official website www.cepal.gr.

According to the Code of Conduct as applicable, the right to submit an objection is granted only once following the implementation of the Arrears Resolution Process (ARP) for each debt.

No objection may be submitted regarding the content of the proposal or counterproposal, the negotiation of which is conducted through the process described in section 3 above (see 3. Arrears Resolution Process and Communication).

Review

The Special Objections Review Committee addresses the objection and, based on the available information and data, issues a written and duly reasoned decision.

Response

The above decision, along with relevant information regarding possible subsequent actions, is sent by registered mail no later than two months from the submission of the objection or from the date of submission of any supplementary documents requested by the institution.

9. Important Notice

Need for Cooperation – Potential Consequences of Non-Cooperation

It is emphasised that the successful outcome within the framework of the Code of Conduct requires a spirit of mutual commitment aimed at fostering trust through timely and honest exchange of necessary information. In the event of demonstrating a non-cooperative attitude and consequent classification as a Non-Cooperative Debtor, according to both the above definitions and the aforementioned Arrears Resolution Process (ARP), there is a serious risk of exclusion of the Non-Cooperative Debtor from special favourable provisions of the legislation and/or other advantages that the debtor could have enjoyed by cooperating to find a suitable solution (e.g., the institution’s abstention from further legal actions or enforcement procedures).

Furthermore, the right to initiate legal/judicial proceedings remains, while the debtor continues to be liable for any outstanding balance, which continues to accrue interest based on the originally agreed terms of the contract and the applicable legislation.

Multiple debts with the same institution

If deemed appropriate or upon the debtor’s request, there is the possibility to consider a unified repayment solution for all debts, regardless of the origin or type of the financing product agreement.

Special Contact Points

Address: 348 Syngrou Ave., Kallithea, Attica, Postal Code 176 74
Exclusive Telephone Information Line regarding the Code of Conduct: +30 213 088 7643
Exclusive Email Address regarding the Code of Conduct: coc@cepal.gr
Company website: www.cepal.gr

Guarantor

For the purposes of the Code, any provision applied to a debtor with overdue debts shall also apply to the guarantor(s) of the debt.

Request for Additional Information

The Company is entitled to seek additional data and information from other sources of sufficient, complete, and accurate information, apart from the debtor, regarding the debtor’s financial data, in order to assess the suitability of alternative restructuring and/or final settlement solutions, subject to compliance with the provisions of applicable legislation.

Disclaimer Statement

The evaluation of applications within the framework of the aforementioned Arrears Resolution Process (ARP) does not guarantee the successful completion of, or agreement on, any proposed Restructuring and/or Final Settlement Solutions.

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