# Greek private debt and residence protection legislation

> Live situation record from CLSTR: https://clstr.news/situations/greek-private-debt-and-residence-protection-legislation
> Updated: 2026-08-31T13:12:10.000Z. Sources: 8. Developments: 2.

Greece is seeing legislative developments regarding private debt and the protection of primary residences. 

A new regulation scheduled to take effect on September 21, 2026, introduces a mechanism within the out-of-court settlement process. This allows debtors to separate their primary residence from other real estate assets, such as holiday homes or land, during debt restructuring. While secondary properties may be auctioned to satisfy creditors, the primary residence can be excluded from installment calculations to create more manageable repayment terms. Under this regime, once an agreement is signed, creditors are prohibited from accelerating forced executions or registering new mortgages against the main home.

In response to the existing legal framework, the SYRIZA-PS opposition party has submitted a bill to the Greek Parliament. This proposal seeks to repeal current bankruptcy laws and reinstate the Katseli law to enhance residence protection. The bill suggests an automated settlement process with repayment terms spanning up to 25 years based on income and living expenses. Furthermore, it proposes the creation of a Development Bank to purchase non-performing loans from investment funds and restructure them to benefit citizens and businesses.

## Claims

- SYRIZA-PS submitted a bill to the Greek Parliament regarding private debt management. (corroborated by 4 sources)
- The bill proposes the repeal of the current New Democracy bankruptcy law. (corroborated by 4 sources)
- The proposal seeks to reinstate the Katseli law to protect primary residences. (corroborated by 4 sources)
- The bill establishes an automated settlement proposal where creditors must respond within 15 days. (corroborated by 4 sources)
- Debt repayment is proposed to last up to 25 years with low interest rates. (corroborated by 4 sources)
- The proposal includes the creation of a Development Bank to purchase 'red' loans from funds and restructure them for citizens and businesses. (corroborated by 4 sources)
- Debts should be regulated based on actual income and reasonable living expenses. (corroborated by 4 sources)
- The bill includes an automated settlement proposal where creditors must respond within 15 days. (corroborated by 4 sources)
- The proposal suggests creating a Development Bank to purchase non-performing loans from funds. (corroborated by 4 sources)
- Judicial protection should be automatically activated at no cost if out-of-court processes fail. (corroborated by 4 sources)

## Timeline

### 2026-08-31: SYRIZA-PS submits private debt reform bill to Greek Parliament

SYRIZA-PS has submitted a bill to the Greek Parliament proposing to repeal current bankruptcy laws, reinstate the Katseli law for home protection, and create a Development Bank to manage private debt.

8 sources. https://clstr.news/cluster/syriza-ps-proposes-new-private-debt-legislation-in-greece

### 2026-08-15: Greece to protect primary residences in out-of-court settlements

Starting September 2026, Greece's out-of-court settlement mechanism will allow debtors to protect their primary residence by auctioning secondary properties to satisfy creditors.

3 sources. https://clstr.news/cluster/greece-to-protect-primary-residences-in-out-of-court-settlements

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Cite as: Greek private debt and residence protection legislation. CLSTR, https://clstr.news/situations/greek-private-debt-and-residence-protection-legislation