# Greece non-performing loan management reforms > Live situation record from CLSTR: https://clstr.news/situations/greece-non-performing-loan-management-reforms > Updated: 2026-09-01T06:15:52.000Z. Sources: 6. Developments: 2. Greece is implementing significant reforms to its non-performing loan (NPL) management system. Starting September 1, new rules following a Supreme Court decision will change how interest is calculated for approximately 100,000 loans under the Katseli Law. Interest will now be based on monthly installments rather than the total outstanding amount, a move expected to reduce borrower burdens and potentially trigger refunds. This change is projected to impact ‘Heracles’ securitizations by approximately 700 million euros. Building on these developments, the Greek government is evaluating a strategy modeled after Cyprus to further manage NPLs. This proposed framework focuses on protecting debtors while maintaining financial stability. Key considerations include imposing interest rate caps to prevent debt inflation, establishing a property re-leasing entity, and improving the code of ethics for debt servicers. The government is also exploring sustainable restructuring plans and potential debt haircuts for businesses with personal guarantees, provided they do not create moral hazard. ## Timeline ### 2026-09-01: Greece considers Cypriot model for non-performing loan management Greece is considering a debt management model based on Cyprus to address non-performing loans through interest rate caps, improved servicer ethics, and more sustainable restructuring for households and firms. 2 sources. https://clstr.news/cluster/greece-considers-cypriot-model-for-non-performing-loan-management ### 2026-08-27: Greece implements new non-performing loan management rules New regulations for non-performing loans in Greece take effect September 1, including interest recalculations for Katseli Law loans and updated business plans for securitizations. 4 sources. https://clstr.news/cluster/greece-implements-new-non-performing-loan-management-rules --- Cite as: Greece non-performing loan management reforms. CLSTR, https://clstr.news/situations/greece-non-performing-loan-management-reforms