The Greek Ministry of National Economy and Finance has detailed eight targeted interventions designed to support both vulnerable citizens and the middle class—responding directly to recent proposals by PASOK on addressing private debt. Citing official data on private debt trends and non-performing loans (NPLs), the ministry argues that Greece’s financial landscape has improved significantly in recent years, and that many of PASOK’s recommendations have already been implemented by the current government.
Eight Key Interventions
1. Katseli Law Interest Rate Adjustment: A favorable interest rate—endorsed by the Supreme Court (Areios Pagos)—has been formally extended to all borrowers complying with the Katseli Law repayment plan, including retroactive application.
2. Increased Unseizable Income Threshold: The protected amount exempt from seizure for debts owed to the state and banks has been raised to €1,600 per month. The ministry estimates this measure boosts monthly liquidity by up to €350 for approximately 1.7 million individuals and small businesses.
3. Bank Account Seizure Reversal: Debtors can now request the lifting of bank account seizures upon repaying 25% of their total outstanding debt—a provision now enshrined in law.
4. Extended Repayment Plans: Older debts may be restructured into repayment plans of up to 72 monthly installments, improving affordability for households and SMEs.
5. Expanded Extrajudicial Settlement Mechanism: The eligibility threshold for entry into the extrajudicial debt settlement framework has been lowered from €10,000 to €5,000, allowing more citizens with modest debt burdens to access structured relief.
6. Automatic Protection of Primary Residence: Under the extrajudicial mechanism, primary residences are now safeguarded automatically and objectively—without requiring additional legal action or discretion.
7. Swiss Franc Loan Resolution: The ministry asserts it has delivered a “fair and realistic” solution for borrowers affected by loans denominated in Swiss francs, addressing exchange-rate-related hardships.
8. Asset Acquisition and Lease-Back Scheme: The newly activated Hellenic Asset Management Company (HAMA) enables financially distressed homeowners—who cannot service their mortgages—to remain in their homes as tenants while retaining the right to repurchase them later.
Broader Macroeconomic Context
Beyond these legislative tools, the ministry highlights broader improvements in Greece’s private debt indicators. According to Eurostat data, Greece’s private debt-to-GDP ratio stood at 96.6% in 2025—well below the EU average of 119.3%. Among the 27 EU member states, Greece ranks 15th—measured in descending order—reflecting relatively moderate household and corporate leverage.
Moreover, the share of overdue private debt within total private debt has declined sharply—from 70.8% in 2018 to 56.7% in Q1 2026—a reduction of nearly 14 percentage points. This trend aligns with a notable drop in non-performing loans across the banking system, underscoring improved financial resilience among Greek households and firms.