The Ministry of National Economy and Finance has submitted to Parliament a new regulation for more than 100,000 borrowers with active arrangements under the Katseli Law, implementing decision 6/2026 of the Plenary Session of the Supreme Court. The provision concerns borrowers who have been included in Law 3869/2010, which served as the main framework for protecting over-indebted households and primary residences.
The key point of the regulation is that interest will no longer be calculated on the total amount of the debt, but on the monthly installment set by the court. This leads to a significant reduction in interest, a lower monthly burden and a shorter repayment period. The regulation also has retroactive effect for those who remain in an active and up-to-date arrangement, meaning that amounts already paid and deemed “extra” under the regulation will be treated as repaid principal and will reduce the outstanding balance.
It concerns borrowers with “red loans”, meaning loans that are unlikely to be repaid or have been non-performing for more than 90 days.
Indicatively, for a borrower with a debt of €144,500, the installment falls from €731 for 300 months to €483 for 255 months. According to the ministry, total interest in this specific example is reduced from around €74,852 to €411.
The government argues that the intervention prevents new legal appeals and ensures uniform implementation of the court decision. The opposition, however, stresses that this is primarily compliance with a binding court ruling and is calling for coverage to also be extended to borrowers whose arrangements were terminated on the basis of incorrect calculations.
Sources: News24/7, Kathimerini
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