Greek political debate over private debt management

Debates in the Greek Parliament have centered on the management of non-performing loans (NPLs) and investment funds. During parliamentary sessions, PASOK MP Alexandros Avlonitis questioned Deputy Finance Minister Dimitris Markopoulos regarding the lack of transparency for debtors concerning exact amounts owed to servicers. Avlonitis noted that NPLs were estimated at 77 billion euros in 2025 and were projected to reach 87 billion euros, following a reported increase of 1.7 billion euros in the first half of 2026.

Political criticism has intensified. PASOK leader Nikos Androulakis has alleged that the New Democracy government has failed to protect borrowers from predatory practices and has not ensured the implementation of Supreme Court decisions regarding interest rate calculations. SYRIZA leader Alexis Tsipras has claimed that foreclosures in 2025 reached five times the volume seen during the 2015–2019 period, accusing the administration of favoring investment funds and “cost-of-living cartels.”

Following pressure from the PASOK party and legal associations, the government withdrew Article 23, a controversial provision regarding the enforceability of bilateral settlement agreements that critics argued could allow auctions to proceed without judicial oversight. Despite this, PASOK maintains that the core issue remains unresolved, calling for comprehensive protections for primary residences and agricultural land. Opposition leaders continue to argue that existing mechanisms allow debt settlements to be executed without judicial approval, potentially increasing auctions conducted without a judge. The government defends its legislative framework, stating its bill is designed to strengthen protections for compliant borrowers and prevent investment funds from acting without oversight.