Greek Government Enacts Major Private‑Debt Relief Package

The Greek Parliament approved a comprehensive amendment to Law 3869/2010 (the Katse law) that reduces monthly installments for more than 100,000 private‑loan borrowers. The reform introduces retroactive relief, erases unfair interest and lowers the minimum debt threshold for the extrajudicial mechanism to €5,000. The extrajudicial process, now framed as a tool to protect first‑home owners, offers 240 standard installments (up to 420 in larger cases) and a higher exemption limit. The legislation’s total cost is estimated at €700 million, of which €500 million covers universal benefits and €200 million funds the retroactive component, half of which will be borne by banks. Finance Minister Kyriakos Pierrakakis presented the package, noting that it provides “real breathing space” for households without the need for court action. The bill passed with overwhelming support—no amendment was voted down and only 22 % of articles were rejected—signalling broad political consensus on tackling private debt.

The law is expected to lower monthly payments by up to €300 for many borrowers, accelerate loan repayment and improve disposable income for affected families, marking the most extensive private‑debt framework introduced in Greece since the financial crisis.