There are times when a legislative initiative is not just another government intervention, but a substantial change that affects the lives of thousands of people.
The regulation regarding loans under the law Katseli which is being voted on today in the Parliament falls precisely into this category. And that is why the term “historic” is no exaggeration.
For the first time, a definitive end is being put to a distortion that for years has burdened thousands of borrowers. The interest will no longer be calculated based on the total loan balance, but rather on the monthly installment set by the court. Even more importantly, the government did not limit itself to a narrow application of the Supreme Court’s decision. It went a step further by establishing retroactive recognition of the additional amounts paid in previous years.
Simply put, those who were consistent in meeting their obligations will not only see smaller installments from now on. They will also be credited for the extra money they paid. These amounts will be calculated as principal paid off, reducing the outstanding loan balance and bringing the day of final repayment closer.
The size of the difference is clearly illustrated in a real-life example. A borrower with a debt of 144,500 euros and a repayment term of 300 months had been paying 731 euros per month until now. Under the new arrangement, the monthly payment drops to 483 euros. What is most striking, however, is the total benefit. Under the previous terms, he would have paid approximately 74,852 euros in interest. Under the new arrangement, the interest is limited to just 411 euros. In other words, he saves more than 74,000 euros. This is a difference that does more than just change a number on a piece of paper. It changes family planning, provides breathing room, and offers hope.
At the same time, the opposition is in a state of complete confusion. For weeks, it had been warning that the government was allegedly looking for ways to circumvent the Supreme Court’s decision to the detriment of borrowers. In the end, exactly the opposite happened. The regulation not only implements the ruling but also provides additional benefits that did not directly result from it. Suddenly, those who had predicted disaster fell silent.
This isn’t the first time. While the government works quietly on difficult issues related to the economy and everyday life, the opposition often seems absorbed in its own internal struggles and its own little worlds. Real politics, however, is judged by results, not by declarations.
Today’s legislation is yet another proof that the country can combine social sensitivity, economic prudence, and effectiveness. And as long as the government continues to produce tangible results in the economy, employment, investment, and in addressing chronic problems, the more the conviction will grow that Greece can look to the future with greater self-confidence and optimism.
