Greek Supreme Court: Katselis Law Installments Become Nearly Interest-Free for 350,000 Borrowers

Greece's Supreme Court has delivered a significant ruling that offers substantial relief to around 350,000 borrowers under the "Katselis law." The court decided that interest on these loans will be calculated based on the monthly installment amount, rather than the total outstanding debt. This change drastically reduces borrowers' financial obligations, effectively making their loans almost interest-free.

The decision, reached by a broad majority of the court's plenary session, was published after a four-month delay. The detailed reasoning behind this crucial judgment is now eagerly awaited, as it will serve as a guide for calculating interest for all individuals who have benefited from the Katselis law.

Many borrowers had already sought legal recourse through interpretation requests, often achieving favorable outcomes. However, the full legal effect of the Supreme Court's decision hinges on its official publication and notification. Once these steps are completed, banks will be mandated to apply the ruling to all qualifying borrowers, providing much-needed financial breathing room.