Supreme Court: A New Era for Interest Rates on Non-Performing Loans — What Borrowers Stand to Gain

A new era in interest rates on non-performing loans which changes the provisions of the Katseli Law and determines what borrowers from the landmark decision of the Supreme Court.

The ruling by the Plenary Session of the Supreme Court regarding the method of calculating interest under Law 3869/2010 redefines the framework for calculating interest in cases involving over-indebted individuals, causing significant changes in how monthly obligations are calculated within the framework of protection of primary residences. At the heart of the new interpretive approach is the strengthening of the protective nature of the Katseli Law and the clarification that the judicial settlement cannot function as a mere banking contract, but as a social protection mechanism with a clear institutional framework in support of a dignified standard of living for debtors.

The decision of the Plenary Session of the Supreme Court was described as positive for borrowers regarding the method of calculating interest for borrowers who are subject to the Katseli Law (Law 3869/2010), during the event held at the Athens Bar Association, on the topic “The application of Decision No. 6/2026 of the Plenary Session of the Supreme Court regarding the method of calculating interest on debt settlements under Law 3869/2010, regarding the settlement of debts of over-indebted individuals,” as reported by ProtoThema.gr.

Presentation and analysis of the decision

By university professors and lawyers, as well as by former minister and professor emerita at the National and Kapodistrian University of Athens, Louka Katseli, a thorough presentation and analysis of the decision by the Plenary Session of the Supreme Court was conducted, and all possible procedural.

The event was addressed by SYRIZA President Socrates Famellos, PASOK Member of Parliament Milena Apostolaki, KKE parliamentary spokesperson Nikos Karathanassopoulos, and “Plevsi Eleftherias” President Zoi Konstantopoulou.

First, Andreas Koutsolambros, president of the Athens Bar Association, pointed out that the Plenary Session’s decision “admits of neither interpretation nor misinterpretation; it is clear and unequivocal in its support of borrowers,” and continued:

A ruling of major legal and social significance

“This is a ruling of major legal and social significance. The Plenary Session of the Supreme Court confirmed the mandatory nature and protective purpose of Law 3869/2010, dispelling the notion that judicial provisions protecting primary residences can be treated as ordinary banking products.”

Elsewhere, the president of the Athens Bar Association noted: “The decision concerns thousands of borrowers who, having already been judicially deemed over-indebted and effectively unable to meet their original obligations, have in recent years faced disproportionate burdens from interest-accruing practices that threatened to effectively nullify the judicial protection of their primary residence.

Today’s event is an opportunity to give a clear response to the self-appointed advocates of the banks and investment funds, who rushed to cast doubt on the significance and implementation of the ruling: The court’s ruling admits of neither interpretation nor misinterpretation. It is clear and unequivocal in its support of borrowers. Respect for it requires full implementation without caveats, gray areas, or interpretive loopholes.”

In closing, Mr. Koutsolambros emphasized: “We have also denounced the abusive practices of debt collection agencies, which undermine borrowers’ rights, endanger their property rights, and display contemptuous behavior toward lawyers and debtors.”

The president of the Athens Bar Association did not fail to point out that the Plenary Session of the Supreme Court, in its decision No. 6/2026, the intervention of the Bar Associations in this case, whereas, in contrast, the Larissa Court of Appeals for Felony Cases had excluded the Bar Associations from supporting the prosecution in the trial regarding the Tembi railway accident.

And this, despite the fact that “we demonstrate, through our daily actions and initiatives, that the role of the legal profession is not limited to individual defense, but also includes the institutional defense of the rule of law, social protection, and citizens’ access to justice.”

Louka Katseli: Interest on primary residence rescue loans must be included in the monthly payment

For her part, Ms. Katseli, the architect of Law 3869/2010, described the Supreme Court’s decision as historic and, among other things, emphasized: “Interest on primary residence rescue loans must be included in the monthly payment. This is clear, in accordance with the legislature’s reasoning, and leaves no room for a different interpretation. It is a standalone provision. In the public interest, it recognizes the right to housing as a constitutionally protected right and the debtor’s right to a decent standard of living.

It defines the installment as a ceiling rather than a basis for calculation and requires that it be compatible with the needs of each debtor. It endorses the possibility of exempting individuals from eviction from their permanent and primary residence and recognizes the necessary mediating role of a judge.

“The protection of the right to housing and the guarantee of a decent standard of living are rights protected by the Constitution and European Directives.”

The speakers were: Stelios Stamatopoulos, Professor at the Law School of the Democritus University of Thrace, attorney representing the case before the Plenary Session of the Supreme Court; Ioannis Delikostopoulos, Professor at the Athens Law School, attorney representing the case before the Plenary Session of the Supreme Court; Georgios Mentis, Professor at the Athens Law School, Advisory Professor in the Trial, Panagiotis Nikolopoulos, Assistant Professor at the Athens Law School, attorney representing the party in the trial before the Plenary Session of the Supreme Court; and Dimitrios Skaripas, Attorney at the Supreme Court, attorney representing the case before the Supreme Court.

The event was coordinated by Dimitrios Lyritsis, a member of the Athens Bar Association’s Board of Directors and a lawyer representing the case before the Plenary Session of the Supreme Court.