As Parliament’s plenary prepares to debate the bill from the Ministry of National Economy on the framework governing the sector, the Association of Loan and Credit Claims Management Companies (EEDADP) has set out its position on the new provisions.
Loan and credit claims management companies operate strictly in accordance with current legislation, are supervised by the Bank of Greece and are monitored by all the relevant authorities. In keeping with their institutional role, they carry out the work assigned to them under Law 4354/2015.
Servicers do not own the claims but manage loans on behalf of their owners. Their clients are private investors, while Greek taxpayers, who have guaranteed the senior notes of the Hercules scheme, have an indirect interest.
Servicers’ operations are governed by Directive (EU) 2021/2167, which was incorporated into Greek law through Law 5072/2023. The Greek legislature has added numerous obligations, making the domestic sector the most strictly supervised in Europe.
According to Bank of Greece data, non-performing private-sector debt fell from €118.5 billion in March 2016 to €82.8 billion in June 2026. The decrease was driven mainly by consensual solutions, with €7 billion in restructurings a year, rather than by auctions.
Shortfalls in the Hercules scheme’s securitisations are not across the board. Targets for restructurings have been met or exceeded, while the shortfall is confined to recoveries through enforcement proceedings.
Accelerating consensual recoveries requires a relationship of trust with borrowers. The sector supports transparency measures, such as providing contracts, payment histories and a breakdown of the debt within 45 days, as well as setting clear deadlines through a platform.
However, safeguards are needed to ensure the favourable provisions are not abused. The provision for automatic sanctions without a court ruling or a decision by the Supervisor requires particular care to avoid creating another source of friction.
The introduction of the Bilateral Restructuring Procedure, replacing the Code of Conduct, is considered necessary. The new procedure, the Out-of-Court Mechanism and the proposed restructuring offer before an auction should operate in a complementary way.
A binding framework is in place to protect vulnerable borrowers and people with disabilities through the Out-of-Court Mechanism, the Interim Programme and the Property Acquisition Body. Offering solutions with a fixed interest rate allows for sound financial planning.
The new procedure is mandatory for all, while the technical implementation of the electronic platform will take time. EEDADP expects delays in enforcement proceedings during 2027, affecting the Hercules scheme’s plans.
As for the enforceable title, the decision not to include it in the bill is respected, although a legislative framework has been in place since 1923 (Legislative Decree 17.7/13.8.1923). A debtor who restructures their debt acknowledges it, while retaining all their legal safeguards.
The new framework for imposing fines is respected, although it is among the strictest in the Greek economy. The data show that complaints from debtors have fallen to less than 1% of cases.
Restoring a payment culture is a key priority for economic stability. Reforms must not allow procedures to be exploited by strategic defaulters at the expense of borrowers who meet their obligations.
EEDADP stresses that it will continue its work in full compliance with the law, mindful of its responsibilities to society and taxpayers.