With significantly higher rates compared to the same period in 2023, the out-of-court mechanism was initiated in August this year according to the Ministry of National Economy. Last month there were 1,039 arrangements, amounting to more than 322 million euros presenting 50.36% increase compared to 691 arrangements in August 2023.

Accordingly, new applications reached more than double the number compared to the corresponding month last year, while submissions also recorded a significantly higher number. In particular, in August 2024 they took place 3,031 new applications and 2,338 submissions compared to 1,280 applications and 1,713 submissions in the same month of 2023.

They are recorded in total 22,214 successful arrangements for initial amount dues 7.52 billion euros that have been settled through the extrajudicial mechanism by the end of August.

At a high rate 70% on average, the approval of financial institutions fluctuates, while the rejections of debtors are at an extremely low rate, i.e. 5% for multilateral and 1% for bilateral arrangements.

Additionally, from the entry into force of the mandatory acceptance by all creditors of the restructuring proposal for vulnerable debtors, in total 1,162 vulnerable citizens have received regulation and 72 have made use of the advance measure, achieving a suspension of auctioning through regulation.

The monthly progress report of the extrajudicial General Secretariat of the Financial Sector and Private Debt Management presents data for systemic banks according to which, during the second quarter of 2024 18.5% of non-performing loans is in a regulation regime and parallel data for the bilateral regulations carried out during the month of July, amounting to 281 million euros for nearly 5,000 debtors and corresponding to the largest loan management companies.

In order to make the most effective use of the available debt settlement tools, it is recalled that the General Secretariat of the Financial Sector and Private Debt Management provides a service which is carried out nationwide by video call or by telephone by appointment through the platform or on the phone 213.212.5730.