Greece Swiss franc loan restructuring deadline set for September 30

Greece is approaching the September 30 deadline for a debt restructuring program concerning loans held in Swiss francs. Eligible borrowers have the opportunity to convert these debts into euros with improved exchange rates. The benefit is structured in four tiers, offering exchange rate improvements of 15%, 20%, 30%, or 50% based on the borrower's category. While a 15% improvement is available without strict restrictions, higher benefits are subject to income and asset criteria.

Currently, approximately 65% of eligible beneficiaries have initiated the process, with banking sources estimating this could reach 70% by the deadline. There are approximately 20,625 loans in Swiss francs remaining in banks, totaling about 2.5 billion Swiss francs, while an additional 17,442 loans totaling roughly 3 billion Swiss francs are managed by debt management companies. In total, an estimated 38,067 loans may be eligible for this framework.

Additionally, new regulations regarding out-of-court settlements and the protection of primary residences are being implemented. This framework allows debtors to separate their primary residence from other assets. Under this model, debtors can settle the debt related to their main home with lower installments, while other properties, such as secondary homes or plots of land, may be subject to fast-track auctions to satisfy creditors.