The government plans to proceed with the establishment of a “Credit Rating Authority” which will create the financial profile of every citizen based on the loans it has received and the debts it owes to the State.
The Authority will shape the profile of each individual or business based on its behavior in repaying its debts. Thus, it will be possible to check the creditworthiness of any natural person or business, both for those who have already borrowed and for those who plan to take a loan.
As the Minister of Finance Christos Staikouras announced speaking at the 22nd annual Capital Link Invest in Greece Forum, the proposal for the establishment of this Authority is included in the first National Recovery Plan submitted to the Commission and is currently being discussed with the European Commission. In fact, according to YPOIK, at the Bank of Greece There will be a Central Service which will update the system on an annual basis with the payment history of each loan.
The main goal is to create a single database for households, businesses with their debts to the State, public bodies, Banks. The specific institution will “evaluate” the possibility of repaying the debts of the citizens but will also contribute to the provision of new credits to those who wish to receive a loan.
One could say that it is a “state of Tiresias”, a project which according to competent sources will take a long time to get “flesh and bones”.
The plan aims at the smooth operation of the market, puts on a realistic basis the valuations of the red loan portfolios sold by the banks while contributing to the creation of effective mechanisms for dealing with the debts of the private sector.
With the operation of the institution, when a natural person or a company will apply to a bank or an enterprise for a loan or cooperation, all its credit behavior will be “checked”, as well as its debts to all institutions, so that the involved bank or company, to decide whether to proceed with the granting of credit based on the behavior of the interested party and not on the basis of income as is done to date. It is reminded that today the only tool that exists is Teiresias SA, in which only reported debts, promissory notes and mortgages are recorded.