Greece: New Out-of-Court Mechanism for Debt Regulation Effective September 21, 2026

Greece is set to introduce a revamped out-of-court mechanism for debt regulation within the coming weeks, with significant changes taking effect from September 21, 2026. The core of the new model focuses on safeguarding a debtor's primary residence.

A key alteration lies in how debt settlements are calculated. Previously, the platform's algorithm considered the debtor's entire asset portfolio, often resulting in excessively high settlement amounts. The new model empowers debtors to exclusively protect their primary home, aligning the repayment installment with their income. Any remaining assets will be subject to liquidation.

This revised regulation is based solely on the value of the primary residence. In numerous cases, this approach is expected to facilitate a reduction, or "haircut," of the total debt owed. The changes aim to provide a more accessible and equitable pathway for individuals to manage and resolve their financial obligations.