The 16 new interventions for private debt and servicers

With 16 new interventions, the framework for the settlement of private debt and the operation of servicers is changing. Eight measures strengthen the protection of debtors and eight tighten transparency, supervision, and accountability for claims management companies.

According to the announcement by the Ministry of National Economy and Finance, for the first time clear deadlines, specific limits, and immediate consequences are being introduced when debtors' rights are violated. In bilateral settlements, the creditor is obliged to respond within three months, the process must be completed no later than within six months, and the down payment cannot exceed 15% of the debt, whereas until now it could reach even 50%.

The protection of the consistent debtor is also being strengthened. As long as they comply with an active settlement, enforcement measures cannot be taken against them. In case of violation, the act is automatically null and void, the debtor is credited with five monthly installments, the settlement is extended by five months without charge, and fines from 50,000 to 500,000 euros are provided for.

At the same time, three months before the auction, the creditor is obliged to submit an appropriate, viable, and documented proposal for settlement. The debtor acquires the right to a full picture of their debt and, if the information is not provided within 45 days, interest accrual is suspended. At the same time, for overdue debts to banks and servicers, it is clarified that the maximum debt limits of the laws of 2000 and 2004 apply, setting an upper limit on the swelling of the debt, without the restrictions that applied until today.

On the other side, servicers are entering a stricter framework of transparency, oversight, and accountability. They are required to disclose more information about their operation and results, submit annual strategic plans to the Bank of Greece, independent audits are established for securitizations linked to a guarantee of the Greek State, and the sanctions imposed on them are strengthened and made public.

Eight new interventions for debtors

1. End to negotiations without deadlines . Response within 3 months, completion within 6 months

A new, autonomous, and standardized bilateral settlement procedure is being established, replacing the Code of Conduct.

For the first time, the process acquires specific stages and binding deadlines.

The debtor submits the application and their complete file, and the lender is obliged within three months either to submit a viable settlement proposal or to explain in writing and with documentation why it is rejecting it.

The debtor has one month to respond and the entire process must be completed no later than within six months.

In this way, an end is put to a process that could remain open for a long time without a clear outcome.

2. Three months before the auction, mandatory, real, settlement proposal

The already existing obligation of the creditor to submit a settlement proposal at least three months before the auction is being substantially strengthened.

A formal proposal is no longer enough. It must be appropriate, viable, and documented, based on the actual repayment capacity, income, and financial situation of the debtor.

The proposal will include specific, standardized information, so that the citizen clearly knows what is being proposed to them, on what data, and why.

3. Documented proposals, alternative solutions, justification when the response is negative

The way in which bilateral negotiation is conducted is changing overall.

Every settlement proposal must be in writing, appropriate, viable, and fully documented, with clear reference to the debtor's income and total assets.

Where there are two feasible alternative solutions, both will be submitted to the debtor, so that they have a real possibility of choice.

If the request for settlement is rejected, the creditor will not be able to limit itself to an unjustified refusal. It will be obliged to justify its decision in writing.

At the same time, the possibility of mediation through the Hellenic Financial Ombudsman is being established.

By decision of the Bank of Greece, the minimum information that must be included in the proposals will be determined, so that the debtor can know exactly how the proposed settlement arose.

4. 15% cap on the down payment .End to demands for 30%, 40%, or even 50%

For the first time, an upper limit of 15% on the down payment that a creditor may request in order to proceed with a direct bilateral settlement is being introduced.

Until now, the amount of the down payment was a matter of negotiation and in several cases the demands exceeded 30%, reaching even 50% of the debt.

This is changing.

Just as there is already a 10% cap in the Out-of-Court Mechanism, a 15% cap is now also being established in direct bilateral settlements.

5. Strong protection of the consistent debtor .Heavy consequences for anyone who violates the settlement

A clear safety net of protection is being established for the citizen who has settled their debt and complies with the agreement.

As long as the debtor is consistent in an active settlement, they cannot face termination of the settlement, a payment order, seizure, or continuation of an auction.

The same protection applies when an installment was not paid because the creditor or the servicer did not provide in time the necessary information for its payment.

And for the first time, the violation of these rules has an immediate and significant cost.

The illegal act is automatically null and void. In addition:

• an amount equal to five monthly installments is credited in favor of the debtor,
• the settlement is extended by five months without any additional charge,
• the consequences of the illegal action are remedied,
• an administrative fine of 50,000 to 500,000 euros is imposed on the creditor,
• in the event of repetition, increased supervisory consequences are triggered.

The consistent debtor is protected and violation of the settlement does not remain without consequences.

6. The debtor will know exactly what they owe, otherwise interest is “frozen”

The right of every debtor to receive a free, full, and detailed picture of their debt is explicitly guaranteed.

They will be able to request the contracts and their amendments, the entire payment history, the method of calculating the interest rate, as well as a detailed breakdown of principal, interest, fees, and every other charge.

The information must be provided within 45 days, provided it is not already fully available in the personalized information system.

And this deadline has a substantive consequence: if the creditor does not provide the information in time, the accrual of interest on the debt is suspended until it provides it in full.

7. Brake on the unlimited swelling of debts

The protective provision of article 39 of law 3259/2004 is being reinstated, without a deadline for submitting an application.

For loans and credit facilities that are at least 90 days overdue, a clear upper limit is set on the total overdue debt. Banks and management companies are obliged to readjust their claims accordingly.

This is a clear limit against the continuous accumulation of interest and charges. A debt cannot swell indefinitely.

8. Protection is expanded for families of children with disabilities

The rights that apply to persons with disabilities are being extended to the parents or legal caregivers of dependent children with a certified disability rate of 67% and above.

The intervention comes following the letter of the Rare Diseases Greece Union of 11 September 2026 and extends, with the same criteria, the designation of vulnerable debtor to these specific families.

Eight interventions for stricter supervision, transparency, and accountability of servicers

The second part of the package concerns the operation of claims management companies.

The main change is that servicers will now be required to provide much more information about how they operate, what they manage, and what results they have, while checks and sanctions are simultaneously being strengthened.

Servicers will be required to disclose annually information on their financial figures and corporate governance.

Information will be disclosed on the portfolios of claims under management and the results of their management.

Thus there will be a clearer public picture of the scope and effectiveness of their activity.

Companies will be required to disclose information regarding borrowers' complaints and the way in which they handle them.

Debtor service thus ceases to be an area without accountability.

Each servicer will submit annually to the Bank of Greece a detailed claims management strategy plan.

The plan will include collection forecasts, strategy by claim category, available resources, cost, risks, and specific performance indicators.

Supervision, therefore, will not be limited only to ex post control, but will also extend to the way in which the management of claims is planned.

In all sales of claims on the secondary market, the intermediation of a credit servicer will be mandatory.

The servicer will thus be accountable for the entire process, including the obligation that the valuation of the loan be taken into account when evaluating the offers that have been submitted.

Servicers managing securitizations linked to a guarantee of the Greek State will be subject to an annual independent management audit.

The audit will cover, among other things, the fees and expenses of the persons involved and of the manager itself.

A summary of the findings will be made public, while the full report will be transmitted to the competent authorities and the Bank of Greece.

Where there is a State guarantee, oversight and accountability are strengthened.

The framework for the imposition of sanctions by the Bank of Greece for violations of the new obligations is being strengthened.

At the same time, publication of the sanctions imposed is provided for.

Thus the sanction will not only have a financial and supervisory effect but will also be accompanied by public accountability.

The supervisory competence of the Ministry of National Economy and Finance is explicitly recognized with regard to the information that servicers are required to publish on the Electronic Platform for Non-Performing Loans.

These are in particular information relating to transactions in non-performing loans that have already taken place or are about to take place.