Greece introduces new debt relief measures for over 1.5 million debtors

Greece is rolling out a comprehensive debt management initiative designed to assist over 1.5 million debtors, encompassing both individuals and businesses. With private debt exceeding 240 billion euros, the government's new measures aim to provide a structured pathway for managing outstanding obligations.

The package, integrated into a broader bill by the Ministry of National Economy and Finance, introduces a new 72-installment payment plan for debts owed to the tax administration and the main social security fund (EFKA) that became overdue by December 31, 2023. Applications for this plan will be accepted electronically until December 31, 2026, with the online platform expected to launch by mid-July. To qualify, debtors must not have other overdue debts or have them settled through existing arrangements, have filed income tax returns for the last five years, and not have been convicted of tax evasion or smuggling.

Further provisions include extending protection for borrowers with Swiss franc loans until September 30, 2026, and increasing the non-seizable amount in bank accounts from 1,250 euros to 1,600 euros for all public and bank debts. A one-time opportunity to lift bank account seizures will be available if 25% of the debt is paid and the remaining amount is arranged through a payment plan.

The scope of the out-of-court debt settlement mechanism is also being expanded. Both individuals and legal entities with debts exceeding 5,000 euros, whether overdue or current, can now enter this framework. Public and social security debts can be restructured into up to 240 installments, while bank and servicer debts can be managed over a maximum of 420 installments, offering significant flexibility to those struggling with financial burdens.