The government is moving forward with the largest package of measures for private debt since the economic crisis, according to Kyriakos Pierrakakis, who defended the legislation passed by Parliament for borrowers covered by the Katseli Law.
As he stated in an interview with Mega, the measure extends the application of a recent Supreme Court ruling and provides for retroactive application for those who are servicing their loans regularly, significantly reducing their monthly payments.
The minister emphasized that the out-of-court mechanism is now the state’s “secret weapon” for comprehensively addressing private debt, noting that debts totaling 19 billion euros have already been restructured through the process. At the same time, he announced that the out-of-court mechanism is now also being transformed into a tool for protecting primary residences, enabling debtors to request a settlement exclusively for their home, thereby securing more favorable repayment terms.
Mr. Pierrakakis also emphasized that the minimum debt threshold for eligibility for out-of-court debt settlement is being reduced from 10,000 to 5,000 euros, while noting the increase in the exempt threshold from 1,250 to 1,600 euros and the new 72-installment payment plan for debts incurred through the end of 2023.
Referring to banks and debt collection agencies, the minister assured that the government is closely monitoring the implementation of the regulations and will not hesitate to take further action where necessary, while rejecting, however, extreme approaches that, as he said, could undermine financial stability.
Regarding the measures to be announced at the Thessaloniki International Fair, he avoided revealing the government’s plans, though he indirectly ruled out the possibility of reinstating the 13th-month salary and 13th-month pension, noting that the fiscal cost of such a move would approach 4 billion euros. At the same time, he reiterated that government policy will continue to focus on gradually boosting disposable income through permanent measures and tax relief.