The servicers are set to file a motion immediately—perhaps even within the day—asking the Supreme Court justices for a clear interpretation of the ruling on interest accrual on loans under the Katseli Law.
At the same time, the Ministry of National Economy and Finance is preparing legislative measures to shield “Hercules” against legal claims from former or current borrowers who had taken advantage of the law’s beneficial provisions.
According to information from Euro2day.gr, the two “sensitive” categories of borrowers who could potentially open the door to retroactive application of the Supreme Court’s ruling are:
- First, borrowers who benefited from the protections of the Katseli Law and have repaid their loans.
- Second, those who entered into the law’s repayment plan but were later deemed “in default” because they were unable to continue making their payments.
Sources at the servicers emphasize to Euro2day.gr that the Ministry of National Economy and Finance is now responsible for protecting loans in this category against legal claims—primarily regarding the issue of retroactivity.
According to Euro2day.gr’s sources, the ministry has confirmed that the issue is under consideration and that a legal/legislative framework has already been established to further protect the securitizations of these loans as a whole.
Request for Interpretation
Given that the decision of the Plenary Session of the Supreme Court has, according to the servicers, contains ambiguities regarding the accrual of interest—not the method itself, but its application, whether to overdue installments or to accumulated installments—the Association of Debt Management Companies is filing this request for interpretation.
The Supreme Court’s response to this will provide clarity for all parties involved and will clearly demonstrate the damage that will be suffered—over time— Heracles will suffer, as the majority of these loans are securitized, meaning they are backed by government guarantees.
For the servicers, this clear interpretation also serves as a legal tool, as it will protect the system from a potential future lawsuit by the government in the event that Heracles’ state guarantees are called upon.