In a response to PASOK’s private debt proposals, Greece’s Ministry of National Economy and Finance reviewed the government’s existing borrower support framework and argued that several proposals have already been enacted, while others would conflict with European insolvency rules or disadvantage borrowers who have repaid their debts. Primary residence protection through the out-of-court debt workout mechanism will take effect on Sept. 21, allowing qualifying borrowers to retain their homes through installment-based repayment arrangements. The framework provides up to 72 installments for older debts and up to 240 installments for public-sector debts through the out-of-court mechanism. Creditors must offer restructuring proposals to eligible vulnerable and middle-income borrowers, and banks must make an offer three months before a foreclosure auction. Eligibility criteria have been doubled, increasing the number of covered citizens twelvefold, while restructuring terms include a fixed 3% interest rate and an algorithm permitting larger debt reductions. The ministry also highlighted an increase in the protected account threshold to EUR 1,600, release of account seizures after repayment of 25% of a debt, and a reduction in the minimum debt threshold for the out-of-court mechanism from EUR 10,000 to EUR 5,000. It reported that private debt equaled 96.6% of gross domestic product in 2025, compared with an EU average of 119.3%, while nonperforming loans held by banks and servicers had declined from EUR 99.7 billion in 2018 to EUR 72.34 billion.

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