Greek households and firms hit by soaring tax arrears and “red loans”

In 2025 Greek tax arrears rose by €3.77 billion while “red loans” – high‑interest private debt – added another €2 billion to the burden on households and businesses. About 4 million taxpayers and 2.5 million contributors to the social security fund EFKA are now classified as debtors, and only a few million have been able to restructure their obligations.

The government’s latest scheme allowing repayment in 72 installments for tax and EFKA debts is expected to have limited impact, as earlier 36‑72‑installment plans in 2021 and 2023 helped only 10‑12 thousand borrowers. An extrajudicial mechanism introduced by the New Democracy administration has assisted tens of thousands, but many agreements are failing because of unrealistic repayment terms and a lack of legal protection for primary residences, leading to foreclosures and auctions.

Critics, including commentator Michalis Katrinis, call for broader reforms such as a 120‑installment plan with a 30 % reduction of the total amount, reinstating protections for vulnerable borrowers, and addressing the practices of funds and servicers that operate without adequate regulation.