Improvements in the operation of the out -of -court mechanism and interventions in private debt management have been announced by the Minister of National Economy and Finance, Kostis Hatzidakis, at a press conference with the Secretary General of Private Debt Management, Theoni Alabassi.

As the minister said, private debt remains below the European average. From 110% of GDP in 2019 it reached 93.3% in 2023 and 2024 will have decreased even further.

At the same time, household debt declined, from 55.4% in 2019, to 40.9% in 2023.

Thanks to government initiatives in the last 5.5 months, red loans from 40.6% declined to 4.6%, approaching the European average. With “Hercules 3” they will be further reduced, Mr. Hatzidakis assured.

Non -performing loans have fallen by 30% and the downward trend is expected to continue.

According to data presented by the total private Red Debt to Banks and Servicers It fell to € 67 billion last year from € 92 billion in 2019 while 30,000 cases have been settled by out -of -court debts with a total of 10 billion euros.

The 6 new initiatives to reduce private debt

At the same time, the Minister of Finance announced 6 new initiatives to reduce private debt.

Specifically:

  1. Increase the eligible spending threshold by 100% for the presumed consensus of creditors. The measure concerns non -performing debts of up to 300,000 euros, enabling more citizens to close their affairs without the need for consensus. In particular, for lower incomes, the income limit is doubled, making it compulsory to integrate into the out -of -court mechanism without consensus by the Servicers.
  2. Creditors’ obligation to file a borrower’s consent prior to auction.
  3. An establishment of a debtor exemption for which he does not open a bankruptcy process, but his name is recorded in the solvency register.
  4. Extension of deadlines for protecting vulnerable debtors, allowing them to join the intermediate program that freezes auctions and execution procedures. The application may be submitted at least 20 days before the auction, ie until the last minute. In addition, the program is extended by 4 months.
  5. Expand the ability to settle debt with a government guarantee, as well as through the resolution process.
  6. Establish a permanent mechanism of compensation by private life capital, thereby ensuring stable welfare protection for debtors.

Legislative intervention for Swiss franc

At the same time, Mr Hatzidakis expressed the government’s willingness to find a fair and realistic solution for citizens who have Swiss franc loans, confirming that the government is being oriented to Legislative intervention.