Greece’s Ministry of National Economy and Finance issued a press statement disputing claims by PASOK that private debt is rising, pointing instead to indicators showing declines in private debt ratios since 2019 and higher volumes of debt restructurings through the out-of-court settlement mechanism after a May 2025 platform upgrade. EU data cited in the statement put total Greek private debt at 93.3% of GDP in 2023 versus an EU-27 average of 125.6%, down from 110% in 2019, while household debt fell from 55.4% of GDP in 2019 to 40.9% in 2023 and 38.8% in 2024. Past-due private debt accounted for 58.4% of total private debt in the fourth four-month period of 2024, more than 10 percentage points lower than in 2019, with the stock at EUR 229.2 billion and Greece ranked 16th in the EU on this metric. Non-performing loans managed by banks and servicers declined from EUR 92 billion in 2019 to EUR 67 billion at end-2024, with any increase in 2025 attributed to the accounting inclusion of PQH loans previously outside the Bank of Greece reporting perimeter. On tax arrears, 79.7% of the overdue balance reported to the Independent Authority for Public Revenue related to periods up to 2018, including 46.8% from before 2013. The ministry reported that successful out-of-court arrangements rose 245% from 2022 to 2023 and 81% from 2023 to 2024; following the May 2025 upgrade that doubled income and asset thresholds and made creditor participation mandatory, May applications rose 145% to 10,870 and new arrangements reached 1,672, while June recorded 1,995 arrangements totalling more than EUR 670 million. By end-July 2025, 40,515 successful arrangements had been completed covering EUR 13.2 billion of original debt, split between EUR 8.1 billion in bilateral settlements with public sector creditors and EUR 5.1 billion in multilateral settlements; the statement also referenced stricter rules for servicers’ conduct and communications, earlier borrower warning requirements ahead of property auctions, and an increase in instalment plans for debts to the tax authority and the social security debt collection centre from 12 to 24.
Ministry of National Economy and Finance (Greece) 2025-09-02
Greece’s Ministry of National Economy and Finance publishes data showing private debt fell to 93.3% of GDP and out-of-court settlements reached 40,515
Greece’s Ministry of National Economy and Finance refuted PASOK's claims of rising private debt, highlighting a decline in private debt ratios since 2019 and increased debt restructurings post-May 2025 platform upgrade. EU data showed Greek private debt at 93.3% of GDP in 2023, below the EU-27 average of 125.6%, with household debt also decreasing. The ministry noted a 245% rise in successful out-of-court arrangements from 2022 to 2023, increasing further after the 2025 upgrade.