2. Code of Conduct on the Handling of Borrowers in Financial Difficulties (“Code”)
The Code is part of the Directive on Arrears Management (Appendix 2 of the Directive).
Themis PM shall apply the provisions of the “Code” to the following persons:
- Natural persons granted credit facilities by the CyCACs with total balances of credit facilities (including the credit facilities of their connected persons) of up to one million euros (€1,000,000). The said scope of application includes guarantors of the borrower and third parties who provided securities to Themis for the borrower.
- Micro and small enterprises granted credit facilities owned by Themis with total balances of credit facilities (including credit facilities of their connected persons) of up to one million euros (€1,000,000). Micro and small enterprises are defined as follows (European Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (2003/361/EC)):
||Number of Employees
||Annual Turnover or Balance Sheet Total
||< or = € 2 million
||< or = € 10 million
The following persons do not fall within the scope of application of the Code:
- Persons for whom an application for bankruptcy was filed by another creditor
- Persons for whom a receiver or administrator was appointed by another creditor
- Persons for whom a dissolution decree was issued.
Borrowers in financial difficulties who seek a restructuring of their loans and who are within the scope of application of the Code must be aware that, in compliance with the Code, the CyCACs are required to:
- Communicate with the borrower during the presence of arrears.
- Request financial information from the borrower. Borrowers who are natural persons are required to submit the “Personal Financial Statement” (PFS), duly completed and signed and a signed declaration to the relevant CyCAC on the completeness and accuracy of the data in the PFS. The PFS is available on Themis Portfolio Management Limited website. When the PFS is completed correctly and quickly, the assessment for restructuring purposes will be completed the soonest possible.
- Assess financial information.
- Propose restructuring solutions.
- Communicate the restructuring proposal.
- Inform the borrower about the mediation procedure governed by the provisions of Part VIA of the laws on the Establishment and Operation of the Financial Ombudsman of 2010 and 2020, as subsequently amended or replaced, and about the alternative dispute resolution agencies which are responsible for dispute resolution pursuant to the National Consumer Alternative Dispute Resolution Law (85 (I) / 2017), as subsequently amended or replaced.
- Inform the borrower of his or her right to submit an appeal to the appeals committee as well as the appeals process.
To inform the public regarding this subject, the Central Bank provides the following information in summary form that analyses:
- Basic provisions of the Code that the borrowers should be aware of.
- Important steps to be followed by a borrower who is experiencing financial difficulties.
The above information can be viewed by clicking here