Approximately 100,000 borrowers with active repayment plans under the Katseli Law will see automatic reductions in their monthly loan installments starting in July — no application required. The measure applies exclusively to borrowers with ‘red’ (non-performing) loans who are already enrolled in the Katseli Law framework.
How the reduction works
Under the new regulation, interest is now calculated on the monthly installment amount rather than on the outstanding principal — a change that significantly lowers payments. According to Omir Tsapalos, spokesperson for the Ministry of National Economy, this adjustment brings the monthly installment down to €388 — a reduction of €209 per month — based on a recent Supreme Court ruling and updated legislation.
The reform also has retroactive effect, reducing the total number of remaining installments needed to fully repay the loan. Officials describe it as a policy initiative that goes beyond the Supreme Court’s decision to deliver greater relief to vulnerable borrowers.
Banks and loan servicers are legally obligated to implement the revised payment amounts automatically. Citizens who do not see the changes reflected in their accounts can file complaints with either the Bank of Greece or the Ministry of National Economy.
New tax and social security payment platform
Also launching in July is a new platform from the Independent Authority for Public Revenue (AADE), enabling taxpayers to opt into the 72-installment plan for debts owed to the tax office and the Social Insurance Institute (EFKA). The non-seizable income threshold has been raised to €1,600 per month.
Over one million people could potentially qualify for this broader debt settlement framework. Included in the same package is an automatic €150 monthly child benefit for 85% of families — again, without requiring an application.
Government stance and enforcement updates
The government describes these measures as a “clear intervention in favour of vulnerable citizens.” Meanwhile, AADE inspections continue, with intensified focus on tourist areas — where reported tax evasion has fallen by 35% in recent years, according to Tsapalos.
He cited specific cases uncovered during inspections, including a construction company on a Cycladic island that declared zero revenue while hiding substantial income. AADE teams conduct targeted field missions during peak tourist season to detect such irregularities.
On fuel receipts, Tsapalos confirmed that, effective 1 January 2027, only named invoices — bearing the customer’s tax identification number (AFM) — will be tax-deductible.