Greece’s Ministry of National Economy and Finance has brought into force an enhanced framework that allows borrowers using the Out of Court Debt Settlement Mechanism to separate their primary residence from their other real estate. The settlement is calculated solely on the value of the primary residence, potentially producing a larger debt write-off and lower monthly payments, in exchange for the borrower consenting to the voluntary liquidation of other property through a simplified auction process. For vulnerable and eligible debtors, creditors must offer this alternative structure, although the debtor may reject it and receive the standard settlement proposal without liquidation of other real estate. Once the restructuring agreement is signed, participating creditors cannot pursue enforcement, auction or interim measures against the primary residence while the borrower complies with the settlement. The agreement also constitutes an enforceable title.
2026-09-21Ministry of National Economy and Finance (Greece)
Greece’s Ministry of National Economy and Finance brings enhanced primary residence protection into force under the Out of Court Debt Settlement Mechanism
Greece’s Ministry of National Economy and Finance has introduced enhanced primary residence protection under the Out of Court Debt Settlement Mechanism. Borrowers may obtain a settlement based only on the home’s value in exchange for liquidating other property, while compliant borrowers are protected from enforcement against the primary residence.