Code of Conduct under Law 4224/2013

The Arrears Resolution Procedure is addressed to:

• Debtors who face financial difficulties and are unable to comply with the repayment schedule of their debt.
• Debtors who, due to the deterioration of their financial situation, believe that they will be immediately led to inability to meet their loan obligations.
• Any provision of the Arrears Resolution Process also applies to guarantors of the above-mentioned debts. Henceforth, the term “borrower” or “debtor” also includes any co-debtor(s) and/or guarantor(s).

The following will be excluded from the application of the Code of Conduct, as in force:

a) Claims on contracts terminated before 1/1/2015,

b) Claims on a borrower not exceeding:

• the amount of one thousand (1,000) euro against individuals, calculated as the sum of the borrower’s debts to the Bank or
• the amount of five thousand (5,000) euros against companies – legal entities, calculated as the sum of the borrower’s debts to the Bank.

c) Claims against companies – legal person who are not “micro-enterprises”, i.e. with an average turnover of less than 1 million. € for 3 tax years.

The Arrears Resolution Procedure may be suspended in cases where the debtor applies for an out-of-court debt settlement, a reorganisation agreement, a declaration of bankruptcy or protection from other (pre)bankruptcy laws.

However, the Bank will assess the repayment ability of borrowers who who, on their own initiative, come and submit the required financial information, regardless of whether they are subject to the above exceptions.

A borrower is considered “cooperative” when they comply with the following general principles of conduct:

• Provides complete and updated contact details to the Bank
• Designates a relative or friend as an authorized representative
• Is available for a contact with the Bank or with anyone acting lawfully on his behalf and responds to the calls and letters with honesty and clarity within fifteen (15) business days
• Discloses information regarding his current financial situation or regarding the change of his financial situation to the Bank with sincerity within 15 business days from the day of change in their financial situation or within fifteen (15) business days from the day on which the relevant information will be requested by the Bank or anyone acting lawfully on its behalf
• Proceeds, either in person or through his representative, with the complete and sincere disclosure of information to the Bank or anyone acting lawfully on its behalf, and such information will have substantial implications to their future financial situation, within fifteen (15) business days from the day on which they will take cognizance of such information and
• Consents to the investigation of an alternative financial restructuring proposal with the Bank or anyone acting lawfully on its behalf, in accordance with the provisions of  the Code of Conduct  Law 4224/2013

The assessment of the borrowers’ financial situation within the framework of ARP is performed by taking into account the most basic expenses for the living of a household (1^st group of expenses), as defined/estimated by the Government Council for Private Debt Management of Law 4389/2016.

The basic expenses included in the formation of the basket of households’ reasonable living expenses include,

but are not limited to: Food, clothing and footwear costs, housing-related expenses, travel, maintenance and repair costs of transport as well as car-machine insurance premiums, costs of using urban and interurban public transport, telephone services costs, etc.

Information and email address:

http://www.keyd.gov.gr/orismoi_synergasimosdan-2/

According to the Code of Conduct under Law 4224/2013, the Bank will contact you in case the loan is in arrears by more than thirty(30) calendar days, by sending a notification (by registered or electronic mail) placing you under ARP.

Within fifteen (15) working days from the receipt of the written notification:

i. either you submit an online application for the settlement of your debt through the digital platform “Code of Conduct” supported by the General Secretariat of the Financail Sector and Private Debt Management (CGTDICH formely EGDICH) of the Ministry of National Economy and Finance.

This procedure enables alla borrowers and debt guarantors (natual persons and legal persong -micro-enterprises) to settle their loans directly with the Bank, on a bilateral basis exclusively.

The steps for borrowers and debt guarantors are described here. Furthermore, GGTDICH has included the service “Code of Conduct” in the myEGDIXlive system. All borrowers and debt guarantors can schedule an appointment (by telephone service at +30 2132125730 or by video conference on the digital portal myEGDIX.live.gov.gr) in order to be infromed by the representatives of the General Secretariat, on matters concerning their application on the digital platform “Code of Conduct”.

ii. or you submit the supporting information that will be requested and which is absolutely necessary for the proper evaluation of your financial situation and the finding of the most suitable solution for you, are submitted to your cooperation branch.

The Bank may ask for further data and information from other legal sources by any appropriate legal means.

The Bank may ask for additional data essential to the assessment and therefore prolong the dates determined in the ARP.

Specific Contact Points:

• All branches of the Bank

(www.chaniabank.gr/el/the-group/tools/branches/chania.aspx)

• Contact by phone with the Arrears Management Division at  2821025585, 2821025592, Monday to Friday 08:00 – 15:30
• By email at arrears@chaniabank.gr

You may contact the Specific Contact Points or any or the Advisory Bodies to ask help filling in correctly your Standardized Financial Statement.

Also, highlights and instructions for completing the Standardized Financial Statement are posted on: fysikaprosopa_mainepil_2_01_04_02_out_kdt_dekstadio01_02_v04_tok_odhgies – Keyd Site

The Bank evaluates the data you have provided and considers data collected from other sources, subject to compliance with the provisions of the applicable legislation on the protection of personal data.

Indicatevely, the following are considered:

·         Current financial state, total amount of debt towards the Bank or other credit institutions; and/or to the State and the Social Security Institutions

·         Current repayment ability (based also on Extrajudicial Resolutions of Disputes, the minimum level of reasonable living expenses, history of transactional behavior

·        Future ability to repay debts, etc.

If you face specific health problems, with a documented particular financial difficulty (family income lower than the reasonable living expenses and absence of liquid assets, yours, your spouse’s or your children’s, except for a main residence with an objective value less than the one defined in accordance with article 3 of Law 4472/2017), the Bank submits to you the appropriate proposal for the settlement or final settlement of your debt, assessing accordingly the ability to repay, based on your specific problems.

If you are a very small business (with an average annual turnover of less than € 1 million for 3 tax years) or you hear business activity, further data are evaluated, such as:

• the submitted business plan or restructuring plan of the company or group and its risk factors, the own participation of the main shareholders, the growth prospects of the sector, the estimated future cash flow, the prospects of the company’s partners, etc.

The Bank will present you with the “Standardized Document for Proposing Settlement or Closure Procudures”, containing the most appropriate resolution/solution for you within two (2) months  from the completion of stage 2.

Within fifteen (15) business days (the specified deadline required to classify a Borrower as Cooperative) after the receipt of the proposal, you must:

• Provide your consent to the settlement / final settlement solution you choose or
• Provide a counterproposal, requesting, if you wish, for mediation from an independent state entity of your choice,  or
• Declare your refusal to consent to any of the proposed solutions

Once  the contractual documents for the implementation of the proposal are signed, the ARP is concluded.

A solution is considered as suitable when it ensures the Bank’s compliance with its supervisory obligations (Executive Committee’s Act 175/2/29-7-2020, as in force), while also taking into consideration the borrower’s financial state.

Debt settlement is achieved through negotiation between the bank and the borrower. The bank may not accept a debt settlement proposal, which is minor to the liquidation value of all the assets of the parties involved (borrower and debt guarantors).

If, despite both conditions are met, the bank and the borrower do not come to a mutually accepted settlement, then their dispute may be resolved out of court, but the Bank may initiate enforcement proceedings with a Cooperative Borrower, provided that the ARP has been concluded

In case you are a debtor classified as Non-Cooperative Borrower, the Bank provides you the right to submit an appeal concerning the compliance with the procedure as determined by ARP.

The appeal is submitted in writing to the Specific Contact Points or by email at appeals.committee@chaniabank.gr within one (1) month from the date you received the latest notification about your classification as “Non-Cooperative” and is evaluated by the Appeals Committee established by the Bank for this purpose.

The decision of the Appeals Committee will be disclosed in writing within two (2) months from the appeal submission.

You have the right to appeal once after each ARP application.

For all other cases, examination of appeals is not obligatory for the Bank.

The offered solutions by the Bank include, among others, the following:

Arrangements that reduce the monthly installment by providing:

• interest only payment for a period of time
• partial interest payment for a period of time
• reduced installment with an increase in the loan duration
• grace period

For debtors who hold more than one arrears without collateral, it is possible to accumulate the total debts in a new loan on terms adjusted to their financial capabilities, with a significant interest rate reduction and a flexible repayment plan, provided that a consensual collateral is provided.

In addition to the above, and especially for businesses, the following are also provided:

• transfer in time of an installment of the loan
• adjustment of the instalments taking into account the seasonality of the debtor’s liquidity.
• examination of any resolution of delays / settlement of debts as provided for in Law 4738/2020, as in force.

Final Settlement Solutions:

These are solutions which, among other things, include the voluntary liquidation of part of the debtor’s assets.

The Bank shall continue to maintain a claim on any remaining debt, after the sale, in accordance with the provisions of the financing agreement.

Especially for real estate, the Bank assigns to  certified engineers the valuation of  its commercial value, when it already secures financing or are intended to secure your debt.

In case a borrower is characterized as “Non-Cooperative”, the following legal and financial consequences may follow:

• denouncement of financing agreement
• additional charges for default interests and court expenses
• legal/court proceedings initiation for the enforced recovery of debt owed by the borrower and/or guarantors, including their main residence. Once the enforcement procedure against you is concluded and the proceeds of the auction are collected, and provided that the outstanding debt is still pending, there is no statutory discharge; in this case and until the Bank receives full repayment of the debt, it will be remunerated as provided for in the financing contract
• danger of being excluded from special beneficial provisions of the legislation and possible benefits in case you cooperate for finding a mutually appropriate solution (i.e. the Bank’s abstention from taking legal action)

The Bank has the obligation to transmit data regarding the debt to the interbank archive of TEIRESIAS S.A., in order to promote the protection of fair dealing and the consolidation of financial transactions.

For advisory assistance regarding the Code of Conduct you may contact the authorized public or private bodies or third parties of your choice. Specifically:

• if you are a private individual – a natural person who does not obtain income from business activity or from a liberal profession, please contact the authorized Centers and Offices for the Information and Support of Borrowers (K.E.Y.D./G.E.Y.D.) of the Special Secretariat for Private Debt Management (EGDYX). At the KEYD – G.I.S. – Keyd Site you will find a list of the available Offices and Centers for information and support of Borrowers, as well as their postal addresses.

Telephone for appointments with an authorized KEYD: 213.212.57.30

• If you are a private individual, who obtains income from a self-employed or business activity or represents a legal person, please contact the relevant Professional Chamber or Professional Association or Institute of Institutional Social Partners.

At  Chambers members | Central Union of Chambers of Greece (uhc.gr) you will find a list of the Chambers of the country.

(All Documents are in Greek)

Standardized Financial Statement

Standardized Information Submission Form

Leaflet for borrowers with financial difficulties

Appeals Form

For more information, interested parties can visit any branch of the Cooperative Bank of Chania.