Over the past year, debt settlements through the Out-of-Court Settlement Mechanism have more than doubled, reaching €10.54 billion, with 31,953 successful settlements. A year earlier, at the end of 2023, the total amount of settled debts stood at €4.36 billion, with 12,025 cases resolved.

This upward trend in debt restructuring continues. Specifically, in February, 1,440 successful settlements were completed, covering €437.16 million in debts. In February 2024, by comparison, 1,222 settlements were recorded, amounting to €392 million in debts.

Minister of National Economy and Finance Kostis Hatzidakis stated:

“The reform of the Out-of-Court Settlement Mechanism’s regulatory framework, which we introduced in December 2023—including an additional debt ‘haircut’ of up to 28%, an obligation for banks, servicers, and the public sector to accept settlement proposals for vulnerable borrowers, a reduced interest rate of 3% on debts for three years, among other measures—has led to a dramatic expansion of restructured debts, reaching €10.45 billion. This confirms that the Out-of-Court Settlement Mechanism is an effective tool for managing private debt, trusted by citizens. It also stands as a prime example of real social policy in action.

“The government is taking another important step to strengthen the mechanism by doubling the eligibility threshold for mandatory participation in the Out-of-Court Settlement Mechanism. With the regulation that will be submitted immediately to Parliament, we are broadening the scope of this beneficial framework to include middle-class citizens, making it easier for even more debtors to restructure their obligations.”

It is worth noting that, in order to maximize the effectiveness of available debt settlement tools, the General Secretariat for Financial Sector and Private Debt Management offers nationwide assistance via video calls or telephone consultations by appointment, through its platform or at 213.212.5730.

Below follows the monthly progress report on the Out-of-Court Settlement Mechanism for February 2025, along with data on loan settlements by financial institutions for January 2025.