Greece’s Ministry of National Economy and Finance published a speech by Minister Kyriakos Pierrakakis during parliamentary debate on a bill to strengthen borrower protections and tighten supervision of loan servicers. The proposals would impose deadlines for restructuring requests and debt information, limit upfront payments and strengthen protection against enforcement. Pierrakakis also confirmed the withdrawal of a provision that would have made bilateral restructuring agreements directly enforceable. Servicers would have to answer complete restructuring requests within three months and conclude the process within six months. Full debt information would have to be provided free within 45 days, with interest accrual suspended if the servicer delays. Upfront payments under bilateral arrangements would be capped at 15% of principal. Termination and specified enforcement actions would be prohibited while borrowers comply with repayment arrangements, including where payments are missed because the servicer has not supplied necessary information. Actions violating that protection would be automatically void, and borrowers would receive a credit equivalent to five monthly installments and an extension of their arrangement without additional charges. Penalties could reach EUR 500,000 per borrower. Previously announced amendments would separately increase the Bank of Greece’s maximum supervisory fine for servicers from EUR 500,000 to EUR 5 million and introduce a fixed 3% interest rate for specified arrangements covering vulnerable and eligible debtors in the out of court settlement mechanism. Additional supervisory requirements would include annual public disclosures, submission of management strategies to the Bank of Greece and independent audits of securitizations linked to Greek state guarantees. The broader bill would also tax individuals’ cryptoasset gains at 10%, exempt net annual gains up to EUR 500 and allow voluntary disclosure of past gains without penalties or interest. A new general government accounting framework, gov-ERP, is scheduled to apply from Jan. 1, 2027.
Greece’s Ministry of National Economy and Finance outlines borrower protections and proposed EUR 5 million supervisory fine cap for loan servicers
During parliamentary debate on a financial reform bill, Greece’s Minister of National Economy and Finance Kyriakos Pierrakakis outlined proposed deadlines for loan servicers, a 15% cap on upfront payments under bilateral arrangements and stronger borrower protections. Previously announced amendments would raise the Bank of Greece’s maximum supervisory fine for servicers to EUR 5 million and introduce a fixed 3% rate for specified debt settlements. A provision making bilateral restructuring agreements directly enforceable has been withdrawn.