Out-of-Court Debt Settlement Mechanism Opens Tomorrow: Up to 420 Installments and Debt Reduction Possible
Athens Times
Greece's new out-of-court debt settlement mechanism launches tomorrow, allowing up to 420 installments and potential debt reduction for eligible debtors.Summary
Greece's new out-of-court debt settlement mechanism, launching on 27 July 2026, expands eligibility by lowering the minimum debt threshold to €5,000 and offers repayment terms of up to 420 monthly installments for debts to banks and loan servicers, with a fixed 3% interest rate and €50 minimum payments. It allows partial principal debt reduction based on financial assessments and requires transparency by lifting tax and banking confidentiality. Unlike the 72-installment plan, it covers multiple creditors and provides longer repayment periods with sustainability-focused adjustments.
(Source：Athens Times)