With the aim of limiting the non-performing loans that are a major burden for the Greek economy to as a priority, the introduction of a new institution, the insolvency administrator, will give a significant boost to the settlement of so-called "bad loans" by accelerating the extrajudicial procedures.
The insolvency administrator undertakes to perform the duties of the liquidator, the mediator, the special agent and the special liquidator included in the Bankruptcy Code. Until recently, the competent bankruptcy courts selected specialists from lists of lawyers' associations and experts from other relevant specialties.
In particular, and in accordance with the relevant Presidential Decree, the terma "Insolvency Administrator" or "Administrator" signifies a natural person who is authorized to perform the duties assigned to the Bankruptcy Administrator, in accordance with the provisions of the Criminal Code, to the Special Administrator 4307/2014, to the special agent of the reorganization process, as well as any other activity for which the law stipulates that the exercise thereof is entrusted to an insolvency administrator.
The role of the insolvency trustee focuses mainly on the drawing up of a debt restructuring plan at the request of the debtor or the creditor. In this context, a short suspension period is set within which the insolvency administrator must present the restructuring plan he has prepared, assessing the viability of the debtor by considering whether there are any rescue options.
According to the Presidential Decree, an insolvency administrator may be a natural person provided that he holds a valid license granted by the competent authority if the candidate has passed the examinations provided for in Article 6.
The condition for attendance at the exam is at least five years of practicing lawyer's profession or that of the statutory auditor or accountant of the first-class tax office.
Persons fulfilling the relevant conditions are entered in the B’ Tier of the Register. Direct registration in the A’ Tier of the register requires the exercise of one of the above professions for at least 10 years and the proven performance of duties of a bankruptcy administrator or liquidator in at least three cases.
It should be noted that, in addition to the specific information duties imposed by the provisions of the legislation in which its duties are laid down, the insolvency administrator is required to draw up a summary report on the course and ways of continuing the insolvency proceedings every six months from the date of his appointment.
This report shall be submitted to the competent body and, in the case of bankruptcy proceedings, within twenty (20) days from the end of the semester.
The insolvency administrator shall be required to provide clarification on his report, if so requested by the competent institution or the rapporteur in the event of insolvency proceedings.
In conclusion, the insolvency administrator must act in the performance of his duties in an independent, impartial, honest and professional manner in order to best serve the interests of creditors and the debtor.