04
Wed, Nov

Greek Finance Ministry Proposes Fixed 3% Debt Repayment Rate

Greek Finance Ministry Proposes Fixed 3% Debt Repayment Rate

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Borrowers restructuring their debts through Greece’s out-of-court settlement system could save thousands of euros under amendments to a Finance Ministry bill announced Tuesday, which would also sharply increase penalties for companies that manage loans.

National Economy and Finance Minister Kyriakos Pierrakakis told a parliamentary committee that borrowers classified as vulnerable or eligible under the debt settlement system would pay a fixed interest rate of 3% for the entire repayment period, replacing a provision that limits the fixed rate to the first three years.

The changes are part of legislation on private debt and loan servicing companies that is due to be debated and voted on in Parliament on Wednesday, Nov. 4.

What Changes for Borrowers

Starting Dec. 1, 2026, the 3% fixed rate would apply for the full term of qualifying debt restructuring agreements, regardless of whether the debt is secured by collateral.

Under the existing rules, borrowers pay a fixed 3% rate for the first three years before switching to a variable rate. The amendment would make the fixed rate

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