Post for the new out -of -court mechanism made by the Prime Minister Kyriakos Mitsotakis presenting details of six new initiatives. “We have successfully put pressure on banks and services with a series of measures that forced them to operate with greater responsibility and transparency. And we are moving on to the new out -of -court mechanism, which is being submitted to Parliament today with six new initiatives that broaden the perimeter and the middle class income that is steadily at the heart of our policies, “Mr Mitsotakis said.
The new measures are as follows: Doubles of the perimeter of eligible debtors with annual incomes of up to EUR 42,000 and assets of up to 360,000 euros, further protection of borrowers through the institutionalization of the creditor’s obligation to deposit the auctioned auctioned on the auctioneer. Banking procedure, but the expansion of deadlines is registered in the Solvency Registry so that the vulnerable debtor can enter the intermediate program, the extension of the ability to regulate loans with a guarantee of Greek publication through the consolidation process, a mumm Providence. “
In detail the post by Kyriakos Mitsotakis:
The out -of -court mechanism for debt settlement to banks and the State was a big bet for our government as early as 2019, when tens of thousands of our fellow citizens were trapped in red loans and arrears to the State, without any long -term and long -term regulation. Our goal was to be able to give our fellow citizens the opportunity to get their debts, by regulating them in an automated and fair way to put their finances in a class and to take their lives back into their hands.
So I am very happy as the results of the out -of -court mechanism so far seem to justify us: In 2024 we had an increase in out -of -court arrangements by 81% compared to the arrangements made in 2023, thus closing the year with a total of 28,945 successful arrangements, corresponding to initial debts of € 9.5 billion. While with the closure of the 1st quarter of 2025 this number was already stood at 33,432 sets of a total of € 10.9 billion. What does this mean? That nearly 33.5 thousand borrowers have achieved a haircut of up to 30% in their debts and a new arrangement to repay up to 26 years.
It is indicative that under the old out -of -court SYRIZA law, which was adopted in 2017, minimal arrangements, about 2,000, had been reached at all, and while private debt was already historically high. Due to this in 2019, in the financial sector, the overdue debts amounted to € 92.2 billion, while today we are at € 67.1 billion as a result of our policies.
We have successfully put pressure on banks and services with a series of measures that forced them to operate with greater responsibility and transparency. And we are proceeding with the new out -of -court mechanism, which is being submitted to Parliament today with six new initiatives that broaden the perimeter and the middle class income that is steadily at the heart of our policies.
What are the new favorable measures?
✅ The double -perimeter of the eligible debtors with annual incomes of up to 42,000 euros and property up to 360,000 euros.
✅ Further protection of borrowers by institutionalizing the obligation of the creditor to have filed a written proposal to the debtor before the auction.
✅ The debtor exemption for which it does not open a bankruptcy procedure but is registered in the solvency register.
✅ The expansion of deadlines so that the vulnerable debtor can be in the intermediate program.
✅ The expansion of the possibility of regulating loans with a guarantee of Greek publication through the consolidation process.
✅ A monumental mechanism of the “ASPIS PREVENTION”.
Thanks to our policies for red loans, both through the out -of -court mechanism and through the “Hercules” program, banks had a significant reduction in non -performing loans in their portfolios.
In the third quarter of 2024, the percentage of non -performing loans reached 4.6%, being lower than the pre -crisis period. Let me only remind you that in 2019 the percentage of non -performing loans was 40.6%! It is also very important that our country is below the average EU. about private debt as a percentage of GDP.
We will continue to fight to support vulnerable incomes, reduce red loans and consolidate our country’s financial sector that must operate by justice and rules as in any European country.