70% of Greek mortgages aren’t being paid

The economy in Greece is so bad that Greeks have stopped paying their personal and consumer debts and are raising cash by selling family heirlooms, according to an astonishing article in the Financial Times.

Here is the scariest quote:

“There’s a real issue of moral hazard  . . .  Around 70 per cent of restructured mortgage loans aren’t being serviced because people think foreclosures will only be applied to big villa owners,” one banker said.

The family still owes a year’s worth of school fees at the private international school their daughter attended, which George admits is not a priority. He is no longer embarrassed by his inability to pay, he says, because so many other parents are in the same situation.

Full article: 70% of Greek mortgages aren’t being paid (Business Insider)

Comments are closed.