Greece's Ministry of National Economy and Finance published a parliamentary speech setting out a legislative provision to address legacy Swiss franc-denominated loans by offering borrowers two defined pathways and requiring banks to accept the option selected. The measure is intended to cover the full stock of existing Swiss franc loans, including non-performing, performing and restructured exposures, whether held by banks or claims management companies. Non-performing loans would be eligible for the out-of-court debt settlement mechanism, with the algorithm-generated solution becoming mandatory for creditors and no additional asset or income filters. Performing or restructured loans could be permanently converted from CHF into EUR at an improved conversion rate, producing a principal reduction of 15% to 50% based on social and economic criteria, alongside a fixed interest rate of 2.30% to 2.90% for the remaining term and an option to extend maturity by up to five years. The ministry framed the package as eliminating foreign exchange risk and providing predictable instalments, while remaining budget-neutral and preserving the capital neutrality of securitisations guaranteed by the Greek state under the Hercules programme. The provision is being debated in parliament as part of a wider draft bill and is being brought to a vote.
Ministry of National Economy and Finance (Greece) 2025-12-18
Greece's Ministry of National Economy and Finance tables Swiss franc loan framework requiring banks to accept euro conversion or out-of-court restructuring
Greece's Ministry of National Economy and Finance proposed a law for legacy Swiss franc loans, offering two borrower pathways and mandating bank acceptance. Non-performing loans can use an out-of-court settlement, while performing or restructured loans may convert to EUR with a principal reduction and fixed interest rate. The measure aims to eliminate foreign exchange risk and maintain budget and capital neutrality, with parliamentary debate ongoing.