Red Loans: Supreme Court Rules in Favor of Katseli Law Borrowers

Borrowers under Greece’s Katseli Law have been vindicated following a landmark ruling by the Plenary Session of the Supreme Court (Areios Pagos). The Court decided that interest on ‘red loans’ must be calculated on the monthly installment—not on the total outstanding debt—significantly reducing borrowers’ financial burden and effectively rendering many installments nearly interest-free. In a 35-to-12 vote, the Court sided with borrowers over investment funds and banks, impacting approximately 350,000 affected individuals. The decision adopted the proposal of Supreme Court Vice President Sotiris Plastiras and resolves a key legal uncertainty raised by the Ioannina Peace Court. Former Prosecutor General Georgia Adeilini had previously supported borrowers’ position in February 2025, advocating for interest calculation per installment.