6 Government Actions to Tackle Private Debt and Protect Primary Residences

The Greek government is implementing six key interventions to curb rising private debt, which threatens the country’s financial system and broader economy. These measures focus on protecting over-indebted and vulnerable households through early identification of financial distress, improving credit risk assessment data quality and availability, and diversifying financing sources beyond banks. The reforms also strengthen supervision and institutional oversight. Crucially, all actions aim to reinforce safeguards for primary residences and housing security—preventing homelessness and further indebtedness. Funded primarily by the Recovery and Resilience Facility (RRF), initiatives include: (1) a Creditworthiness Assessment Information System with a central database for public and private debtors; (2) implementation of the National Private Debt Management Strategy, including 11 supporting studies and an NPL transaction platform; (3) a Private Debt Monitoring Registry—a centralized electronic data repository collecting debt information from all public and private lenders; (4) upgrading debt restructuring and ‘second chance’ frameworks via enhanced digital platforms for early warning and out-of-court settlements, plus training and advisory services for professionals and individuals; (5) modernizing Greece’s capital markets through regulatory codification and digital upgrades to the Hellenic Capital Market Commission’s IT systems; and (6) establishing a Real Estate Acquisition and Leaseback Agency to manage and restructure debts of vulnerable households while preserving their primary residence.