A new legal framework for private debt relief has entered into force following the enactment of the relevant law, introducing significant changes to 72-month repayment plans, court-ordered settlements, out-of-court restructuring mechanisms, and bank account seizures.
Key Changes Across Debt Resolution Tools
The reforms affect millions of borrowers with outstanding debts to banks, the Greek state (via the tax authority), and social security funds. The most immediate change concerns repayment plans — particularly the widely used 72-month scheme introduced under former Finance Minister George Katseli’s legislation.
Revised Interest Calculation for 72-Month Plans
Under the updated rules, interest on active Katseli-law repayment plans will now be calculated only on the monthly instalment amount — not on the total unpaid balance. This shift substantially reduces the overall cost of repayment. Additionally, any excess interest already paid will be offset against the final instalments of the plan.
Fixed Terms for Existing Agreements
For individuals already enrolled in administrative or out-of-court restructuring agreements under previous laws, the agreed monthly payment is now considered final. No additional interest or recalculations may be applied beyond what was stipulated in the original agreement.
New 72-Month Repayment Option for Public Sector Debts
A new extraordinary repayment plan — allowing up to 72 monthly instalments — is introduced for overdue debts owed to the tax authority and social security funds. Eligible debts must have arisen on or before 31 December 2023 and must not have been under an active repayment arrangement as of April 2026. Applications will be submitted electronically and remain open until 31 December 2026.
Higher Protected Amount for Bank Accounts
The protected (‘non-seizable’) threshold for bank accounts has increased. For debts owed to the state, it rises from €1,250 to €1,600 per month. For debts owed to private creditors — including banks — the protected amount is set at €1,600 for individual accounts and €2,200 for joint accounts.
Early Release of Bank Account Seizures
Debtors may now request the lifting of a bank account seizure once they have repaid at least 25% of the debt that triggered the measure. This option is available only once per taxpayer.
Expanded Access to Out-of-Court Restructuring
The minimum debt threshold for eligibility under Greece’s out-of-court restructuring mechanism has been lowered from €10,000 to €5,000 — extending access to more small-scale debtors. Under this mechanism, repayment plans can extend up to 240 months for public-sector debts and up to 420 months for debts owed to banks and loan servicing companies.
New Protection for Primary Residences
For the first time, debtors using the out-of-court restructuring process may exclude their primary residence from asset liquidation — opting instead to settle obligations through other assets. This provision aims to support more sustainable and socially responsible debt resolution outcomes.