Greece introduces new debt settlement mechanism with up to 420 installments

Greece has activated an enhanced electronic platform for its non-judicial debt settlement mechanism, enabling individuals and businesses to manage their overdue debts under more favorable conditions. The updated system, operational since Monday, July 27, offers the possibility of repaying debts in up to 420 monthly installments, depending on the creditor.

A significant change in the new framework is the reduction of the minimum debt threshold for eligibility, lowering it from 10,000 euros to 5,000 euros. This adjustment is expected to broaden the number of beneficiaries who can access the settlement program. Individuals and businesses can now consolidate debts owed to various entities, provided the total amount exceeds the 5,000-euro threshold.

The mechanism covers debts owed to the state, the Hellenic National Social Security Fund (EFKA), and credit institutions. Specifically, it allows for up to 240 installments for debts to the state and up to 420 installments for debts to banks and other credit providers. The minimum monthly installment has been set at 50 euros, with debt write-offs being permissible only under specific legal conditions.

This initiative aims to provide a more accessible and flexible solution for those struggling with financial obligations, offering a structured path toward debt resolution. The expansion of the program and the extended repayment periods are designed to alleviate financial pressure on a wider segment of the population and business community.