Out-of-Court Debt Settlement Mechanism Hits New Record: 2,879 Agreements Worth Nearly €1 Billion

Greece’s out-of-court debt settlement mechanism achieved a new milestone in March, completing 2,879 agreements totaling €982 million – the highest monthly figure since its launch. This success is attributed to expanded eligibility criteria under Law 5193/2025, which strengthened creditor obligations to propose restructuring plans and enhanced debtor protections. Demand for the mechanism is growing, with 6,674 new applications and 3,782 submissions in March, bringing the total settlements to 58,212, covering an initial debt of €18.08 billion.

The program particularly supports vulnerable groups, with 262 settlements reached for economically disadvantaged households in March, including 18 for individuals with disabilities. Furthermore, 505 debtors have secured suspensions of enforcement measures, protecting their homes and assets. Bilateral agreements with major debt servicers (Intrum, Cepal, DoValue, and Qquant) are also increasing, totaling €254 million across 3,641 debtors in February 2026.

These positive developments coincide with a significant improvement in the banking sector, with non-performing loans (NPLs) falling to 3.3% as of December 2025 – the lowest level since 2002. The digital appointment service, myEGDIXlive, has also seen increased uptake, scheduling 12,529 consultations in the first quarter of 2026, with high citizen satisfaction rates (96.8%) regarding the support provided.

(Source：Athens Times)