Greece lowers debt settlement threshold to 5,000 euros

Greece is set to significantly expand its debt relief program, making it accessible to a broader range of individuals and small businesses starting July 27, 2026. The digital platform for the Out-of-Court Settlement Mechanism for Debt Regulation will now accept applications from those with debts as low as 5,000 euros, a substantial reduction from the previous 10,000 euro minimum.

“

With over 64,000 debt settlements totaling around 20 billion euros, the Out-of-Court Mechanism has already won the trust of citizens as an objective and reliable tool for debt regulation.

This move is expected to provide a crucial safety net for hundreds of thousands of households and small entrepreneurs who were previously excluded from the program due to their smaller debt amounts. The previous threshold left many vulnerable to sudden bank account seizures and forced sales of assets. The new law, 5313/2026, aims to rectify this by lowering the entry barrier.

"By lowering the integration limits from 10,000 to 5,000 euros, we are now giving even small debtors the opportunity to settle their outstanding obligations and protect their assets from forced measures," stated Theoni Alabasi, Secretary General of the Financial Sector and Private Debt Management. She added that this expansion could allow approximately one million potential public debtors to join the program and find a comprehensive solution, demonstrating the government's responsiveness to market and household demands.

“

By lowering the integration limits from 10,000 to 5,000 euros, we are now giving even small debtors the opportunity to settle their outstanding obligations and protect their assets from forced measures.

The benefits of entering the mechanism, even with smaller debts, remain substantial. These include the suspension of all forced collection actions and asset seizures upon final application submission. Furthermore, debtors can benefit from extended repayment periods, with options for up to 240 installments (20 years) for debts owed to the state and up to 420 installments (35 years) for bank debts.

“

With the expansion of the limits, approximately one million potential public debtors will be able to join the out-of-court settlement and receive a comprehensive solution. And it proves in practice that the government has recorded and implemented a standing request from the market and households.