Athens court grants debt relief for Swiss franc loans

The Athens Court of First Instance has issued a landmark ruling that provides legal protection to a borrower struggling with Swiss franc-denominated loans under the Katseli Law (Law 3869/2010). By overturning a previous lower court decision, the court has effectively reduced the borrower's debts and secured their primary residence.

The court recognized that the dramatic shift in the EUR/CHF exchange rate—which fell from 1/1.65 in 2007 to 1/1.083 in late 2015—constituted an unpredictable change in economic conditions. This currency shock caused monthly loan installments to surge from 1,500 euros to 2,400 euros, leading to a permanent inability to pay.

This decision sets a significant legal precedent for other borrowers in similar situations, as it applies recent Supreme Court jurisprudence regarding the favorable calculation of interest rates in such cases.