In a television interview, Minister of National Economy and Finance Kyriakos Pierrakakis outlined planned legislation to strengthen oversight of loan servicers and confirmed a new 120 installment option for borrowers seeking to repay accumulated debts. The ministry is also preparing further energy support while maintaining the measures announced at the Thessaloniki International Fair. The servicer legislation will cap upfront payments demanded under repayment arrangements and prohibit auctions or seizures when borrowers are complying with an arrangement. Any enforcement action in those circumstances will be void, the borrower will receive a benefit equal to five installments and the servicer may be fined up to EUR 500,000, with the penalty doubling for repeat violations. The 120 installment plan will supplement existing private debt measures, including the out of court mechanism and changes concerning protected bank accounts. Pierrakakis said Greece has provided about EUR 1 billion in support since the energy crisis began and will reassess oil prices after 15 days with a view to supporting heating oil. The government is seeking additional European fiscal flexibility to expand assistance if conditions worsen, while the forthcoming draft budget will reflect implementation of the previously announced fiscal measures.
Greece’s Ministry of National Economy and Finance outlines tighter loan servicer rules and 120 installment debt plan
Greece’s Ministry of National Economy and Finance plans tighter loan servicer rules and a 120 installment option for debt repayment. Enforcement against borrowers complying with arrangements will be void, with servicers facing fines of up to EUR 500,000 that double for repeat violations. The government will also reassess oil prices after 15 days as it considers further energy support.