The withdrawal of Article 23 is not enough, says Milena Apostolaki, PASOK’s banking and private debt policy lead, announcing plans to table an amendment repealing a provision relating to the out-of-court mechanism.
Ms Apostolaki said that “the New Democracy government was forced into a disorderly retreat in Parliament and had to withdraw the provocative Article 23, which sought to grant banks and loan servicers yet another privilege by making debt settlement agreements enforceable titles and denying borrowers the right to judicial protection”.
Provision on out-of-court mechanism in focus
The PASOK official said that “this is not the end of the matter”, adding that the government must also promptly repeal the corresponding provision in Article 27(3) of Law 4738/2020, as added by Article 15 of Law 5313/2026.
The provision, she said, makes the debt restructuring agreement reached through the out-of-court mechanism an enforceable title.
“The government’s climbdown over the provocative measure, under pressure from the opposition and institutional bodies, must be completed with a corresponding provision in the much-publicised but ineffective tool of the out-of-court mechanism,” she added.
Ms Apostolaki also asked whether the government, which urges citizens to turn to the out-of-court mechanism to restructure their debts and protect their assets, “told them that, as far back as last summer, it had enacted a provision turning the restructuring agreement itself into an enforceable title in favour of creditors”.
Amendment to be tabled
The PASOK official said that “we are taking legislative action immediately and will table an amendment to repeal this provision”.
She urged the government to accept the amendment and “prove in practice that the withdrawal of Article 23 will not amount to a mere public relations manoeuvre”.
She concluded by saying that “the New Democracy government will now have to take a clear position in Parliament: either it will support repeal of the provision or bear full political responsibility for retaining it”.