Greek private‑debt reforms give fresh relief to 2 million households

The Ministry of Finance has launched a new package of measures for private debt after the multi‑law bill passed parliament. The reforms affect more than two million Greek households and include:

• Recalculation of interest on court‑approved debts (Law 3869/2010, former Katseli law) so that interest is applied only to the monthly instalment, sharply lowering monthly payments. • An emergency scheme allowing repayment of older debts to the state and social‑security funds in up to 72 instalments, with electronic applications and a deadline of 31 December 2026. • A rise in the non‑seizable income threshold to €1,600 per month for public‑debtors and to €1,600/€2,200 for private‑bank accounts, freeing up to €4,200 a year for about 1.7 million accounts. • Expansion of the extrajudicial settlement mechanism and a reduction of the minimum debt amount for participation, giving more borrowers a route to restructure debt outside the courts. • A provision to lift bank‑account seizures once the debtor pays at least 25 % of the outstanding amount.

Finance Minister Kyriakos Piararakis stressed that private debt is “perhaps the most complex social imprint of the crisis” and that the goal is to “break the vicious debt cycle” by offering “real second chances”. The measures aim to lower monthly burdens, protect primary residences from foreclosure and restore financial stability for millions of citizens.

The reforms are being implemented immediately and are expected to alleviate household debt pressure across Greece.