Minister Kyriakos Pierakakis has introduced legislative changes aimed at providing relief to more than 100,000 borrowers under Greece’s Katseli Law (Law 3869/2010), a key framework for debt restructuring and primary residence protection. The amendment—approved on 24 June 2026 as part of the broader omnibus bill—revises how interest is calculated on active judicial debt settlements and introduces retroactive recognition of overpaid amounts.
A Nationwide Application of the Supreme Court Ruling
The measure implements, in full and without exception, a recent ruling by Greece’s Supreme Court (Areios Pagos). While court decisions typically bind only the parties involved, the government has opted for universal application: the revised interest calculation applies automatically to all borrowers currently under active judicial restructuring under Law 3869/2010 — no new individual lawsuits are required.
What Changes for Borrowers?
Under the previous system, interest accrued on the total outstanding loan balance. Now, interest will be charged solely on the court-ordered monthly instalment — not on the entire remaining debt. This significantly reduces both the monthly financial burden and the total cost of servicing the loan over time.
For those who have already paid higher amounts under the old method, the amendment does not provide cash refunds. Instead, excess payments are credited toward principal repayment — effectively lowering the remaining debt balance or shortening the number of remaining instalments. In practice, many borrowers may now clear their debts earlier or see a marked reduction in their final payments, while also paying substantially less interest overall.
Who Is Excluded?
The retroactive provisions do not apply to cases already concluded — including those where the debt has been fully repaid and the borrower’s primary residence secured, or where legal consequences of default (e.g., forfeiture from the restructuring plan) have already taken effect.
The amendment explicitly distinguishes the Katseli Law framework from other debt resolution mechanisms — notably the out-of-court mediation process and Law 4605/2019. For those schemes, the existing interest calculation remains unchanged: monthly payments continue to be treated as amortising instalments applied to the full restructured debt amount, per current regulations and settlement agreements.
Estimated Fiscal Impact
The government estimates the potential fiscal cost of this intervention at €700 million.