Greece launches new extrajudicial debt restructuring platform

From Monday, an online platform for Greece’s new extrajudicial debt‑restructuring mechanism is open to individuals and businesses that owe at least €5,000 to the Tax Authority (AADE), the Social Insurance Institute (e‑EFKA), banks or debt‑collection firms. The lower threshold—down from €10,000—could bring up to one million additional debtors into the scheme.

Applicants submit detailed information on income, assets and liabilities and must agree to lift tax‑ and bank‑confidentiality safeguards. The program offers up to 240 monthly installments for tax and e‑EFKA debts and up to 420 installments for bank or servicer debts, with a minimum payment of €50 and a fixed 3 % interest rate for the entire period. Under certain conditions, a partial cancellation of the principal may be granted based on the debtor’s financial situation.

The platform automates the assessment and proposal of repayment plans, aiming to provide more affordable terms and to reduce the number of overdue debts across the public and private sectors.