The Supreme Court’s full plenary session published its decision today, in which it ruled by a strong majority in favor of borrowers covered by the Katseli Law regarding the method of calculating interest.
According to the plenary session’s decision, the full text of which will be posted later today on the Supreme Court’s website, the calculation of interest owed on non-performing loans will now be based on the monthly installment rather than the total amount.
Specifically, the plenary session decided, by a vote of 35 in favor and 12 against, that the interest owed by borrowers covered by the Katseli Law must be calculated based on their monthly installment rather than the total loan amount.
As is well known, asset management companies and funds sought to have loan interest calculated based on the total amount owed, which imposed significant financial burdens on borrowers.
Source: APE-MPE