The Supreme Court’s decision has been published, underwhich the installments of debtors covered by the Katseli Law are being “reduced.” Under this ruling, the interest owed on these non-performing loans will now be calculated based on the monthly installment rather than the total amount.
The plenary session passed the decision with a majority of 35 in favor and 12 against.
As is well known, asset management companies and funds sought to have loan interest calculated on the total amount owed, which imposed significant financial burdens on borrowers.
As reported by Euro2day.gr, the decision reportedly affects approximately 70,000–80,000 borrowers who have received the relevant court rulings.
The impact on “Hercules,” given that the majority of these loans have been securitized, amounts to 1 billion euros.
The ruling makes no mention of the issue of retroactivity. However, legal sources point out that borrowers will fight it again through appeals to the administrative courts, using the Supreme Court’s ruling as their “weapon.”