June 2014 – upd October 2025 (in red the additions)
George Psarakis LL.M. (mult.), PgCert
A large amount of information is currently available on the
internet regarding the liability of a loan guarantor with a
counterparty credit institution. The issue is topical due to the
large number of terminated loan agreements, but it is also
extremely interesting in that it concerns the liability of a third
party, usually a relative of the original debtor, who, for
gratuitous reasons, in most cases, has placed his property as
collateral for the original debtor's creditors. The credit
institutions, on several occasions, did not even check the solvency
of the guarantor, or at least did not care whether he was
creditworthy or not. As long as his signature was on the contract.
In recent years, following the successive terminations of loan
agreements and the transition to the stage of legal recourse,
guarantors have found themselves in a rather difficult position,
especially
