The General Secretariat for the Financial Sector and Private Debt Management announces that the legislation passed to clarify the method of payment of monthly installments for loans subject to an active repayment plan that has not been completed under Article9 of Law 3869/2010 (the Katseli Law) or for which the conditions for declaring them in default had not been met at the time the law took effect, is effective immediately.
Consequently, upon publication of the relevant Government Gazette, the current month’s installment will include interest on the monthly installment, in accordance with the specific provisions of the law.
If borrowers with an active repayment plan need clarification regarding the exact amount of their installment, they may contact the bank or the debt collection agency managing the loan to obtain the relevant information.
The calculation of overpaid amounts based on previous interest calculation methods will be performed by the creditors and will take several months, given the use of computerized methods in the creditors’ records to determine the exact amount, considering the volumeof the loans.
In any case, according to the relevant provision, the excess amount will be treated as a principal repayment and will be deducted from the most recent installments due under the repayment plan initially approved by the court, without altering the amount of the installments set by the court, in addition to the interest calculated on a monthly basis.