During the process of the Out-of-Court Mechanism, does the new Law oblige the banks and the funds to settle the debts? What are the rules they are required to follow? How is it ensured that they are respected and not abused?

No, in the process of the Out-of-Court Debt Settlement Mechanism there is no obligation of the credit institutions or the loan managers (representing the funds) to settle the debts of the debtors. However, if a borrower owes money to multiple creditors and agrees to an arrangement with the majority of banks - loan managers, then this arrangement is mandatory for the rest. In addition, the Law imposes on banks and loan managers specific rules for debt settlement, such as:

• the ability to repay, ie that the debtor must pay on the basis of his income as well as those of his guarantors
• the principle of non-deterioration of creditor position, ie that no creditor can receive less money than they would receive in the event of liquidation of the property of the debtor and his guarantors
• the symmetrical satisfaction of creditors, ie that the debtor's money must be distributed proportionally, so as to cover all creditors (public and financial sector).