Greek banks and RMBS transactions are at risk of losing interest payments because a Greek housing agency has delayed, if not frozen, paying interest subsidies, according to Fitch Ratings.

The Organismos Ergatikis Katikias (OEK), the Greek Workers Housing Agency, started delaying payments on interest subsidies in 2009, but issuer reports for some RMBS transactions still showed subsidy payments being received. This was because the originating banks were making the payments on the OEK's behalf. The OEK is legally obliged to pay the subsidies.

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