The government’s amendment, containing provisions regarding current loans under the Katselis Law—which affects more than 100,000 borrowers, was the focus of remarks by party spokespersons and expert speakers during the debate on the draft law submitted by the Ministry of National Economy and Finance “Measures to address the energy crisis and boost citizens’ disposable income, wage and tax provisions, regulations for the out-of-court debt settlement mechanism, public sector pension provisions, provisions regarding the Gaming Supervision and Control Commission and improvements to the gaming regulatory framework, provisions regarding the Public Real Estate Company S.A., and other provisions” in the Plenary Session.
New Democracy’s rapporteur, Xenophon Baraliakos, referring to the amendment, emphasized that it “is neither a court order nor an obligation imposed on the State. Rather, it is a conscious political choice by the New Democracy government to actively stand by people who for years have been facing the burden of the crisis and private debt.”
With this new regulation, Mr. Baraliakos said, “the recent decision by the Supreme Court regarding the method of calculating interest is being universally applied. From now on, interest is not calculated on the total amount of the debt, but on the respective monthly installment, which leads to a dramatic reduction in financial burdens and provides substantial relief for thousands of households. Most importantly, however, the new provision applies retroactively to those who are already in active repayment plans.
Amounts already paid will be recalculated based on the new framework, correspondingly reducing the remaining installments and borrowers’ total obligations. And this carries particular political and social significance. This is a measure with a fiscal impact approaching seven hundred million euros, which constitutes, without exaggeration, one of the most significant measures to protect borrowers and the largest overall effort to address private debt since the country’s economic crisis.”
Regarding the provisions of the bill, the New Democracy rapporteur called for their approval, emphasizing that it “effectively supports disposable income, addresses the housing problem, provides new tools for managing private debt, strengthens the productive economy, attracts investment, modernizes institutions, and shields the state against contemporary forms of crime.”
A series of positive measures that, as he noted, “are based on fiscal responsibility, the consistency of reforms, the strengthening of the economy’s competitiveness, and, above all, the conviction that growth has value only when it translates into tangible benefits for society.” Mr. Baraliakos said that this is a bill “with a strong social, developmental, and reformist impact, offering more support for society; more opportunities for the economy; and greater security and prospects for the future.”
The PASOK-KINAL rapporteur, Paris Koukoulopoulos, for his part, regarding the amendment concerning the Katseli Law loans, borrowers, and private debt, criticized the government, stating that “is acting too late, resorting to stopgap measures after the fact, and yet you’re asking us to praise you.” PASOK, the MP said, “has put forward a series of proposals on private debt, as it is doing today with the amendments it has tabled, which concern the 4 million taxpayers who currently have debts—that is, half of all Greeks. We have a holistic approach, and our key difference is that we are talking about a fresh start for society and the economy. We must remove the noose that has been placed around half of Greek society.”
Regarding the bill’s measures, he noted that it contains positive provisions but also controversial tax breaks and handouts for certain groups, such as advance payments to energy providers, controversial bonuses and “lifelines” for contractors and large corporations, mutual fund managers, and investors from third countries who already enjoy special tax treatment.
The question that arises, however, said Mr. Koukoulopoulos, is where this revenue comes from that the government is now seeking to redistribute, since it does not come from taxing companies with excess profits or banks, nor from taxing dividends, but rather from the heavy and multifaceted taxation of middle- and low-income earners, through increases in indirect taxes combined with inflation, unfair presumptive taxation, etc.
“We,” said Mr. Koukoulopoulos, “have a different strategy and set of priorities—one that respects fiscal stability but involves radical shifts in priorities; that is where we differ—in our priorities.” The PASOK spokesperson stated that a new social contract is needed.
SYRIZA’s spokesperson, Vasilis Kokkalis, regarding the amendment on loans under the Katseli Law, the protection of borrowers, and the handling of private debt in general, rejected the notion that SYRIZA is driven by “loan-related populism.” He acknowledged that the Katselis Law “was, on the whole, a good law, but some strategic defaulters took advantage of it, and many of its provisions remain unenforced.” The government’s amendment, he said, comes after the Supreme Court issued its ruling following a pilot trial, so the government is obligated to apply it universally. “So why are you celebrating? And why are you talking about a government initiative?” he asked.
This amendment, he said, “excludes both those who have faithfully paid off their loans and those who were unable to do so because they were subject to high interest rates.” Regarding the handling of private debt, the MP noted that “there is a need to balance a citizen’s right to a decent standard of living with satisfying creditors as much as possible.” Regarding the out-of-court mechanism, he added, “It is unthinkable, for the sake of consensus, that a debtor should lose all their assets to save their primary residence, without any valuation. The 72 installments are not a solution; 120 installments are needed, with the write-off of interest and surcharges.” He also called for the write-off of interest and late fees on agricultural loans and cooperative loans.
Regarding the bill, Mr. Kokkalis stated that “it is the government’s standard practice to legislate piecemeal, with an obvious inability to exercise parliamentary oversight.” “We,” he said, “are clear that we will not engage in a blanket rejection. We will, of course, vote in favor of the positive provisions; however, we must highlight the philosophy underlying the bill and government policy, which can be summed up in one word: ‘mockery.’”
The SYRIZA spokesperson, in his opening remarks, also focused on the provisions concerning housing, stating that government policy does not view it as a social problem or a prerequisite for a dignified life. That is why the problem is worsening, he noted. He also criticized the programs announced by the government as ineffective.
KKE spokesperson Christos Tsochanis, speaking about the measures for borrowers, said that “the government and the other parties should be ashamed that the Greek people are losing their homes every day. You’re celebrating the Supreme Court’s decision and the relief measures you’re introducing, even though 5,500 homes were foreclosed in 2024, another 6,000 in 2025, and another 11,000 foreclosures are projected for this year!”. The KKE, he said, “has been proposing an amendment since June 2024 for borrowers under the Katseli Law—an amendment you did not vote for at the time, but which the Supreme Court is now adopting.”
The KKE MP stated: “Do not dare to take away the home of someone who was unable to pay their installments because they had to cover other needs.” Adopt, he emphasized, the KKE’s proposal to write off interest, surcharges, and 50% of the principal for working-class households. Regarding this bill, the KKE MP emphasized, “It reeks of elections,” and added, “You’re throwing crumbs at the citizens—but where did you get them from? From the big conglomerates, shipowners, and business tycoons? Or from the backs of the people who pay 95% of the taxes?” You are subsidizing, he said, “supermarket price hikes” through the government’s policy.
Vasilis Viliardos, a spokesperson for the Greek Solution party, commented on the amendment regarding loans under the Katseli Law, saying, “In a nutshell, this is the government’s classic ‘free ride’ ploy, since it’s simply implementing the Supreme Court’s decision,” and asked, “Isn’t it shameful for the government to ‘sell’ it this way?” Mr. Viliardos stated that “Mr. Pierrakakis was the one who threatened that the government’s guarantees to Heracles would be called in and that the Greek people would have to pay for them, due to banking instability.” He argued that the cost of the settlement is being shifted to citizens rather than to the banks, which will pay only 100 million euros. He raised the issue of refunding excess interest to those who have paid off their loans. He asked, “What will happen to those who lost their homes due to excessive interest rates or who defaulted on their repayment plans because of high installments resulting from penalty interest?”
Regarding the bill’s measures, Mr. Viliardos described them as inadequate and accused the government of painting “a picture of the economy that will explode like a bomb.” The measures for citizens, he said, are a “farce,” but conversely, they are significant for specific companies, investors, and contractors “for whom it is lavishly providing a ‘fast-track’ using national resources so that they can complete the projects they have undertaken to carry out.” “We,” he pointed out, “have consistently diametrically opposed views to those of Kyriakos Mitsotakis’s New Democracy. We believe in social liberalism and not in handing out subsidies.”
Andreas Voryllas, the spokesperson for the “Niki” party, said regarding the amendment on Katseli loans that “we recognize that it is a step in the right direction toward implementing the recent Supreme Court ruling and preventing differing interpretations by banks and loan administrators,” but added that “passing a law alone is not enough to solve the problem”. The reality, the lawmaker argued, is that “the Supreme Court’s decision and the legislative regulation cannot cover all the technical details required for their day-to-day application to hundreds of thousands of loan agreements with different characteristics, different repayment stages, and different information systems,” and called on the Bank of Greece to assume its responsibilities and issue a detailed interpretive circular with specific guidelines to prevent arbitrary interpretations, as has occurred in the past.
Regarding the bill, Mr. Voryllas stated that it is “a typical example of the approach the government has taken in recent years, seeking to manage the consequences of problems without addressing the deeper causes that create them. “It is a policy that constantly announces subsidies, aid, and emergency measures instead of seeking to address the distortions that are making the economic environment suffocating for most households, farmers, and professionals.”