Greece’s Ministry of National Economy and Finance published remarks by Minister Kyriakos Pierrakakis outlining proposed borrower protections and tighter supervision of loan servicers during debate in Parliament’s Standing Committee on Economic Affairs. The bill would standardize bilateral debt restructuring, restrict enforcement against borrowers complying with repayment arrangements and strengthen servicers’ disclosure and accountability obligations. The borrower safeguards include requirements for substantive restructuring proposals before auctions, limits on excessive upfront payments and clearer information on amounts owed. Borrowers complying with an active repayment arrangement would be protected from loan termination, the issuance and enforcement of payment orders, seizure and continued auction proceedings. Other measures would curb interest accumulation on old overdue loans and provide greater protection for families with children or people with disabilities. Servicers would face mandatory financial disclosures, annual plans submitted to the Bank of Greece and stricter rules governing loan sales. Oversight measures also include accountability for borrower complaints and independent annual audits of servicers operating within the Hercules scheme. Stricter sanctions and their public disclosure would be accompanied by additional supervision from the ministry.
Greece’s Ministry of National Economy and Finance outlines proposed borrower protections and tighter loan servicer oversight
Greece’s Minister of National Economy and Finance Kyriakos Pierrakakis outlined proposed debt restructuring safeguards and stronger loan servicer supervision during parliamentary committee debate on a financial sector bill. Borrowers meeting repayment arrangements would receive protection from enforcement, while other provisions address restructuring offers before auctions, upfront payments and debt transparency. Servicers would face expanded disclosure and reporting obligations, independent audits under the Hercules scheme and stricter sanctions.