The Greek government is preparing to introduce legislative measures offering relief to borrowers with Swiss franc-denominated loans. According to reports, the new plan will classify borrowers into four distinct categories based on income and asset criteria, each receiving a different level of debt reduction.
Borrowers in the first category will include households with an annual income of up to €22,000 and real estate assets worth no more than €185,000, depending on family size. These borrowers, considered the most financially vulnerable, are expected to receive a 25% haircut on their outstanding loan balance calculated at the current EUR/CHF exchange rate. The interest rate for this group will be fixed at 2.30% for the remainder of the loan term.
The second category will cover borrowers with an annual income of up to €27,500 and immovable property valued up to €231,250. This represents a 25% increase in financial thresholds compared to the first group. They will receive a 20% haircut, with a fixed interest rate set at 2.50%.
For the third group, eligibility extends to those with incomes up to €33,000 and real estate assets of up to €277,500. This group will benefit from a 15% haircut and a fixed interest rate of 2.70%.
Finally, the fourth category will have no income or asset restrictions, but will receive the lowest level of relief—a 10% haircut.
Final decisions from the Ministry of National Economy and Finance are expected by mid-July. Borrowers will have the option to either pursue out-of-court settlement mechanisms or opt for the government’s legislative solution, with any decision being voluntary.
There are approximately 35,000 Swiss franc loan borrowers in Greece, with total loan amounts reaching between €4.5 billion and €5 billion. Banks hold around 20,000 such loans totaling €2.5 billion, while the rest are managed by servicers. If all eligible borrowers participate, banks could face costs of around €400 million, with servicers bearing approximately €350 million.