“THE out -of -court mechanism to set debt settlement to the 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 overdue liabilities to the State, without any possibility of long -term regulation and economic activity. Our goal was to be able to give our fellow citizens the opportunity to cut off their debts by regulating them in an automated and fair way to put their finances in a classroom and take their lives back in their hands, “notes a post on Facebook. Kyriakos Mitsotakis.
“So I am very happy, as the results of the out -of -court mechanism seem to be justified: in 2024 we had an increase in Extraordinary 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 succeeded haircut Up to 30% in their debts and a new arrangement to repay up to 26 years, “the prime minister continued.
And added: ‘It is indicative that under the old out -of -court of the SYRIZA Law, which was adopted in 2017, had been made by minimal arrangements, about 2,000, 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 Servicers in 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. “
Mr. Mitsotakis added that the new favorable measures are:
- Doubles of the perimeter of eligible debtors with annual incomes of up to 42,000 euros and assets of 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 prior to the auction.
- The debtor exemption for which it does not open a bankruptcy process but is registered in the solvency register.
- The extension of deadlines so that the vulnerable debtor can enter the intermediate program.
- The expansion of the ability to regulate loans with a guarantee of Greek publication through the resolution process.
- A monumental mechanism of the compensation of the “ASPIS PREVENTION”.
“Thanks to our red loans policies, both through the out -of -court mechanism and through the Heracles program, banks had a significant reduction in non -operated loans In their portfolios, “Kyriakos Mitsotakis also said. And he noted: “In the third quarter of 2024, the percentage of non -performing loans reached 4.6%in bank portfolios, 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 the financial sector of our country that must operate by justice and rules as in any European country. “
