Greece's Ministry of National Economy and Finance reported that completed applications to the out of court debt restructuring mechanism reached 4,144 in October 2026, the highest level in six months. The update also outlined a legislative initiative covering borrowing costs, access to debt information and protection against creditor enforcement. October recorded 1,965 successful restructurings covering EUR 524 million in original debt, including 552 under mandatory creditor participation. Cumulatively, 72,232 successful restructurings had covered EUR 21.77 billion in original debt through October. The legislative initiative provides for a fixed 3% interest rate throughout the repayment term for vulnerable and eligible borrowers restructuring debts to financial institutions through the mechanism, applying to payments from Dec. 1, 2026. Borrowers gain access to complete debt information free of charge within 45 days. If a servicer misses that deadline, contractual and default interest stop accruing until the information is supplied in full. Creditors must provide a suitable, sustainable and substantiated written restructuring proposal at least three months before an auction. A standardized digital process for bilateral debt settlements must conclude within six months. Eligibility for repayment of tax and social security arrears in up to 120 monthly installments extends to debts arising or assessed through the end of 2024. Borrowers complying with restructuring agreements are protected against contract termination, payment orders, seizure and auctions. Protection also applies when missed installments result solely from creditors failing to provide necessary payment information. Prohibited collection or judicial action is automatically void, and any auction initiated must be suspended immediately. Violations trigger an automatic credit equal to five monthly installments and a five-month extension without interest or fees. Administrative fines for breaches range from EUR 50,000 to EUR 500,000 and double for repeat violations. Separately, the Bank of Greece's maximum fine for servicers increases tenfold, from EUR 500,000 to EUR 5 million.
Greece's Ministry of National Economy and Finance reports 4,144 debt restructuring applications and outlines borrower protections
Greece's Ministry of National Economy and Finance reported 4,144 completed applications to the out of court debt restructuring mechanism in October 2026, the highest level in six months. Its legislative initiative provides for a fixed 3% restructuring rate for vulnerable and eligible borrowers, free access to debt information and protection against enforcement for borrowers complying with repayment arrangements. Prohibited enforcement triggers automatic compensation, while the Bank of Greece's maximum fine for servicers rises from EUR 500,000 to EUR 5 million.