ocp192_en

ANNEXΡar /ΡageAction Deadline Comments StatusMoU3.5.1The BoG commits to continue improving the managementof assets under liquidation.ContinuousEvaluation of the strategies submitted by theliquidators has been completed.Observed.MoU3.5.2MEFP(29)The BoG commits to develop an implementation planoutlining further steps to improve collections and establishtargets, in order to ensure an effective utilization of theenhanced tools.3.6 Supervisory model and HFSF's liabilityMoU3.6.1MEFP(30)MoU3.6.2MEFP(30)MEFP(30)MoU3.6.3MEFP(25)The BoG commits to review its supervisory model to bringit in line with international best practices and consistentwith the Single Supervisory Mechanism guidance and aimto complete this process by end-2013.The Government commits to amend law 3864/2010 that alldecisions of the Governing Council and the ExecutiveBoard , are meant to be in accordance with the HFSF’smandate, if taken in accordance with the law and with aview to protecting the public interest, in particular thefinancial stability, in accordance with the commitments ofthe Hellenic Republic set out in Law 4046/2012 (FEK A28), as these commitments are updated from time to timein accordance with paragraph 5 of the same law.The Relationship Framework Agrements between theHFSF and the core banks have been approved by theHFSF's General Council, signed by the parties andpublished.The Government commits to review in cooperation withthe EC/ECB/IMF staff the functioning of the HFSF byend-September 2013. Any adapration will take intoconsideration its evolving tasks, in line with the programand the long-term interests of the banking sector andtaxpayers.3.7 Review of the legal insolvency frameworksMoU The Government commits to implement the necessary3.7.1regulations to put in place the "Facilitation Program" thatMEFP(31) has been adopted by Parliament.MoU3.7.2MEFP(31)MoU3.7.3MoU3.7.4.iMEFP(32)MoU3.7.4.iiMEFP(32)MoU3.7.4.iiiMEFP(32)MoU3.7.5MEFP(32)MoU3.7.7MEFP(32)The Government commits to: Adopt definitions for termsas "acceptable living expenses" and "cooperativeborrowers", as guidance for the judiciary and banks, with aview to protect vulnerable households.Continue monitoring closely the resolution of distresseddebts for households, SMEs, and corporates.The Government commits to build on the significantachievements toward reforming insolvency regimes, bytaking the following steps: i. Established a working groupto identify ways to improve the effectiveness of debtresolution processes for households, SMEs, andcorporates.To this end, the Government will, by in consultation withEC/ECB/IMF staff, identify key bottlenecks andThe Government with technical assistance commits topropose concrete steps for the enhancements in this area.The BoG will issue in consultation with banks andEC/ECB/IMF staff, a time-bound framework for banks tofacilitate settlement of borrower arrears using standardizedprotocols, based on the review of banks’ distressed creditoperations. These (MEFP) include assessment procedures,engagement rules, defined timelines, and terminationstrategies.The BoG will require banks to present, by mid-Septembera strategy for improving their distressed credit operations(e.g., by strengthening internal arrears management units,July 2013December2013BoG has submitted the “Progress Report andImplementation Plan on Liquidating Banks” on2/8/2013 and its updated version on 4 November2013. Also a Committee Committee of SpecialLiquidations is already operational, improving theefficiency of collections for banks under clearanceBoG has asked technical assistance by IMF and theprocedure is in progress (in agreement withEC/ECB/IMF). Many aspects relating to the SingleSupervisory Mechanism that have to be adopted bythe Bank of Greece are not yet defined at Europeanlevel, so the action could not be completed.NotObserved.Pending.N/APending.July 2013 Art. 74 law 4172/2013 FEK 167/23-7-2013. Observed.July 2013September2013August 2013September2013ContinuousJuly 2013July 2013October 2013December2013September2013The RFAs have been signed and published onHFSF's web-site.Amendment of the law for the recapitalization ofbanks and the law of the HFSF are underway. Legalprovisions on the Law 4254/2014MD signed FEK 1731/Β/15-07-2013 (conditions andsupporting documents for borrowers).Law 4224/2013 FEK 288. The Government Councilfor the Management of Private Debt shall design themonitoring framework for debt resolution. The Codeof Ethics shall be developed by the BoG accordingto the Law 4224/2013 FEK 288. Pending thefinalisation and adoption of the two definitions.The Government Council for the Management ofPrivate Debt shall design monitoring framework fordebt resolution. The Code of Ethics shall bedeveloped by the BoG according to the Law4224/2013 FEK 288. Note and proposal sent to theprincipals by the Minister. Comments are expected.The Working Group is established (members byMinDev, MinFin, MinJus, BoG, HBA).The review that identifies key-bottlenecks wasdelivered to EC/ECB/IMF on 3/8/2013. Law4224/2013 FEK 288 is voted.Two meetings of the Government Council for theManagement of Private Debt (l. 4224/2013) tookplace and a third meeting is scheduled. Agreedtimeline and concrete steps.The issue of distressed borrowers is underconsultation with EC/ECB/IMF. After theintroduction of the Law N.4224/2013 the timetablefor this action should be rearranged. On 02.14.2014BoG submitted to EC/ECB/IMF a draft ofExecutive Committee Act for Supervisoryframework for the management of loans in arrearsand non-performing loans. The same draft wasforwarded to credit institutions, cooperative banks,branches of credit institutions from third countriesoperating in Greece and the HBA and ESTE (CoopBank Association). This message signalled theinitiation of the consultation phase for the regulatoryinitiative.Banks have submitted their strategic plansNotObserved.Pending.Observed.NotObserved.Pending.NotObserved.Observed.NotObserved.Pending.NotObserved.Pending.NotObserved.Pending.Observed.103