Greece eases protection on troubled mortgages as bad loans rise

Pensioner protesters stand outside the Health Ministry office in the northern Greek port city of Thessaloniki, Wednesday Dec. 18, 2013. Greek state hospitals are functioning with emergency staff as doctors and staff hold twenty three days strike against planned health cutbacks enforced under the country's harsh austerity program. (AP Photo/Nikolas Giakoumidis) (The Associated Press)

Pensioners protesters stand outside the Health Ministry office in the northern Greek port city of Thessaloniki, Wednesday Dec. 18, 2013. Greek state hospitals are functioning with emergency staff as doctors and staff hold twenty three days strike against planned health cutbacks enforced under the country's harsh austerity program. (AP Photo/Nikolas Giakoumidis) (The Associated Press)

ATHENS, Greece – The Greek government says it will partially lift protection for distressed mortgages in the crisis-hit country to protect banks from a rising number of unpaid loans.

The Development Ministry said Wednesday it will extend through 2014 a freeze on repossession but only for primary properties valued at up to 200,000 euros ($275,000) and households with an annual net income of under 35,000 euros.

But blanket protection on main household properties — a measure essentially in effect since the start of the financial crisis four years ago — will end on Jan. 1, the ministry said.

The Bank of Greece on Tuesday said the general amount of non-performing loans had risen to 29.3 in June, from 24.5 percent a year earlier.

The new regulations are to be voted by parliament Saturday.