New strict framework for banks and cards with borrower protection, maximum fee limits and an end to hidden costs on loans and credit products.

The Minister of Development and Investment, Takis Theodorikakos is placing a radical increase in transparency in bank lending at the center of the government’s efforts, with the main focus being a new strict aimed at eliminating “fine print” terms in loans and credit cards. The legislative initiative seeks to reshape the consumer credit landscape, by imposing clearer limits on the total cost of borrowing and strengthening citizens’ rights to information and <a href="https://tomanifesto.gr/protection for citizens against complex banking practices. At a time of increased financial pressures on households, the initiative aims to serve as a mechanism to limit financial burdens and restore the balance between borrowers and financial institutions.

At the same time, Takis Theodorikakos referenced the usefulness of the new digital platform PosoKanei in informing consumers.

Theodorikakos on PosoKanei: The need for consumer awareness among citizens

“PosoKanei is a platform for informing citizens created by the new Independent Authority. Consumers check the prices of each item and decide where they can shop more affordably. All opposition parties, instead of complaining, should be commending us for doing this,” the Minister of Development emphasized, noting that this is an initiative that consumer organizations should have undertaken years ago. “We want to help foster consumer awareness among citizens and collaborate with the consumer movement. We’re on the same side of the hill,” he emphasized.

When asked whether the creation of this app is an admission that the government is doing nothing to address the rising cost of living, Mr. Theodorikakos replied that “These are not serious matters. Does the fact that citizens are informed mean they accept that we’re doing nothing? In every country, the consumer movement drives change and holds sway; here, its influence is limited. Instead of engaging in political rhetoric, certain people should be highlighting specific issues and exposing those who try to profit unfairly. A stronger consumer movement would help, and we should join forces.”

The Minister of Development also referred to the measure capping profit margins in relation to 2025 “a measure that no other government has ever taken in the past—neither PASOK nor SYRIZA. The opposition has nothing to say about this. It is, of course, for a limited period of time, because we want a free market. If we hadn’t taken this step, food and fuel prices would be much higher, partly because the price of oil has more than doubled due to the war. Of course, many of our fellow citizens are facing financial hardship. The question is what you do to help these people and contribute to a more productive economy that provides better wages. Our policy is having a significant impact.”

Regarding the banks

Regarding the bill on consumer credit, which is open for public consultation until June 29, Mr. Theodorikakos emphasized that “it puts an end to the fine print, sets a cap on the total annual effective interest rate (APR), which cannot exceed 30% to 50%, and a cap on the final amount the borrower can pay. This applies to consumer loans, home improvement loans, and credit cards for amounts up to 100,000 euros without collateral. There is a right to withdraw from a loan agreement within 14 days, and citizens may request to speak with a person rather than a machine. Through our policies and actions, we are protecting consumers as well as the banking system itself.”

Regarding the polls, he noted that “they will have very little bearing on the election results. I’m not saying this to criticize the polling firms, but there is a constant political dynamic, especially within the opposition. It’s like quicksand. Mr. Tsipras and Mr. Androulakis claim they want to be the leading party, while they’re actually fighting over who will come in second.” Regarding New Democracy and achieving a majority, he emphasized that “the crucial question is what strategy we will follow from here on out.”