The phrase \u201cwe are not doing the bare minimum required of us by a court. We are doing the maximum required of us by political responsibility<\/b>\u201d reflects the government\u2019s stance toward borrowers under the Katseli Law.<\/p>\n
During his address to the Plenary Session regarding the bill on support measures for citizens as well as the amendment concerning loans under the Katselis Law, the Minister of National Economy and Finance, Kyriakos Pierrakakis<\/b>, set the tone. \u201cWe step in and solve problems. We<\/b>do not let problems drag on. We do not allow injustices to be perpetuated. We do not allow distortions to become entrenched<\/b>.\u201d<\/p>\n
Mr. Pierrakakis said that \u201cthere are bills that regulate matters of day-to-day administration, and there are bills that reflect a comprehensive policy vision of how the economy, the state, and society itself can function. This bill belongs to the second category because behind its individual provisions lies a unified rationale of the Kyriakos Mitsotakis administration<\/b>, namely that economic policy must: Resolve outstanding issues from the past. Support those most in need in the present. <\/b>Create the conditions for more and better investments. Protect the rule of law against illegal activities that erode the economy and society and undermine social cohesion. This is exactly what we are striving to do today.\u201d<\/p>\nThousands of families have been trapped in lengthy legal proceedings<\/h3>\n
Regarding the amendment on Katseli loans, the minister said that this law was passed in 2010 during an exceptionally difficult historical period, at the height of the economic crisis, with the aim of protecting households that found themselves in genuine distress. And I say \u201cwith the aim,\u201d because I do not wish to question the intention. However, in the end, the Katseli Law neither protected all those who were truly in need with the necessary effectiveness<\/b>, nor did it prevent strategic defaulters from abusing the framework, as they found a way to \u201chide\u201d behind years of judicial delays.\u201d As Mr. Pierrakakis stated, \u201cthousands of cases were brought before the courts. Thousands of families were trapped in protracted proceedings. And ultimately, a landscape of uncertainty, ambiguity, and conflicting interpretations emerged. And perhaps the most revealing fact is this: Half of the applications were rejected by the courts. Nearly one in two applications ultimately failed to meet the eligibility requirements for protection. In other words, a framework established to protect the vulnerable ended up, in many cases, blurring the lines between genuine vulnerability and strategic evasion.\u201d<\/p>\n
The minister said that \u201cPASOK and SYRIZA, which defended this framework, bequeathed a time bomb to the country. It constantly generated uncertainty.\u201d <\/b>In contrast to this, \u201cthe current government has decided not to kick the can down the road again. It will not hide behind legal interpretations but will provide a definitive solution to the problem. The decision by the Plenary Session of the Supreme Court provided crucial legal guidance on how to calculate interest. We, however, are not stopping there. We are enacting legislation for universal application and providing a solution for everyone with active repayment plans\u2014without new court cases, without new appeals, and without further hardship. More than 100,000 of our fellow citizens will immediately see their monthly payments drop sharply\u2014in many cases by as much as 300 euros per month.<\/b> A real relief for every household and greater justice in practice. But we didn\u2019t stop there. We deliberately went beyond what the decision itself stipulated, because we believed that political responsibility is not limited to strict legal compliance. And this must be said, without beating around the bush.\u201d<\/p>\nSmaller installment\u2014faster repayment<\/h3>\n
The government, the minister emphasized, \u201cwas not obligated to enact retroactive measures.\u201d<\/b> We could have limited ourselves to applying the new calculation method from today onward. We could have said that the issue is resolved only for the future. We didn\u2019t do that. We chose to go much further. We chose to recognize that those who, over all these years, remained consistent and paid more than they ultimately owed are entitled to meaningful redress. The excess amounts that have already been paid are recognized as principal repayment, reducing the outstanding balance and shortening the repayment period. This means smaller installments\u2014faster repayment. <\/b>We are not just doing the bare minimum required by a court. We are doing the maximum that our political responsibility demands.\u201d The total cost of the arrangement, the minister said, \u201camounts to approximately 700 million euros. About 500 million relates to future relief for borrowers, and about 200 million to retroactive reimbursement for amounts already paid. And I want to be absolutely clear. This burden will not be passed on unilaterally to taxpayers. It will be shared by both the banks and the \u201cHercules\u201d state guarantee scheme, in proportion to the amounts each party has collected. Furthermore, through this same provision, we clarify that the arrangements entered into through the Out-of-Court Mechanism <\/b> are not affected by this provision. The terms of the agreements remain unchanged, and, most importantly, interest rates do not change. This means that we are providing substantial relief to borrowers without, however, creating new uncertainties.\u201d<\/p>\nEasy accusations, grand statements<\/h3>\n
Commenting on the positions of the opposition<\/b>, Mr. Pierrakakis spoke of \u201ceasy accusations, grand statements. But there is an irony here. Some have presented themselves as self-appointed defenders of borrowers, ultimately asking for less than what the government is proposing today. They spoke only of implementing the decision. We are introducing universality. They spoke vaguely about redress. We are introducing retroactive measures. Some saw the borrowers\u2019 distress as an opportunity for political exploitation. We saw it as a duty of political responsibility. And that is what ultimately defines a government: Who can take complex, long-standing problems and transform them into clear, stable, and workable solutions.\u201d<\/p>\nPrivate debt<\/h3>\n
Speaking about the problem of private debt, the minister noted that \u201cit remains one of the most difficult legacies of the crisis. <\/b>And when we talk about private debt, we are actually talking about a family struggling to meet its obligations, a business owner trying to keep his business afloat, or a citizen who isn\u2019t asking for privileges but for a fair second chance.\u201d He pointed out that \u201cprivate debt as a percentage of GDP fell to 94.1% in 2024, with Greece now below the European average of 121.4%. Non-performing loans at Greek banks have fallen dramatically. From approximately 40% of the loan portfolio in 2019, they now stand at less than 3%, a level now comparable to the European average. Through the out-of-court settlement process, more than 62,000 settlements have already been reached, totaling over 19 billion euros. <\/b>Compared to 2022, the performance of the out-of-court settlement program has increased by 700%. Performing loans are more than double the amount of non-performing loans (179.2 billion euros and 72.6 billion euros, respectively). <\/p>\n
He noted, however, that \u201ceven if just one citizen remains trapped, our responsibility remains. That is why, with the bill we are voting on today, we are decisively strengthening all the tools for managing private debt. We are lowering the threshold for out-of-court debt settlement from 10,000 to 5,000 euros, opening access to approximately one million of our fellow citizens. <\/b>We are introducing the option to settle debts owed to the government and social security funds in up to 72 installments. We are raising the exemption threshold from 1,250 to 1,600 euros. At the same time, we are substantially strengthening the protection of the primary residence through the out-of-court mechanism. The out-of-court mechanism now gives the borrower a clear and realistic choice: They can protect their primary residence by liquidating their other assets to secure a larger debt reduction and lower monthly payments. \u201cThis substantially increases the chances of them keeping their home and making their repayment plan truly sustainable,\u201d he concluded, adding that \u201cWith all these measures, we are building a cohesive safety net\u2014a framework that offers second chances, protects homeowners, and rewards consistency.\u201d<\/b><\/p>\n
Economic policy, the minister said, \u201cis not judged solely by how it handles the unresolved issues of the past. It is also judged by how it responds to the pressures of the present. And today, these pressures are very real\u201d due to the war in the Middle East <\/b>, and we know very well how this pressure translates into citizens\u2019 daily lives. It affects fuel prices, supermarket shelves, and ultimately a family\u2019s disposable income at the end of the month. That is why we must take timely and targeted action to ensure that economic progress benefits society. And with this in mind, we are introducing a financial assistance payment of 150 euros for each child\u2014a measure that will benefit approximately 975,000 families and more than 3.3 million of our fellow citizens. We are further strengthening support for retirees, by increasing the permanent annual allowance from 250 to 300 euros and broadening the income criteria so that approximately 85% of retirees will now receive this support<\/b>.\u201d<\/p>\nThe burden of rent<\/h3>\n
Regarding the housing problem, Mr. Pierrakakis said that \u201cFor thousands of young people and families, rent has become one of the greatest burdens of daily life. That is why we are significantly broadening the criteria for annual rent reimbursement, extending the measure\u2019s coverage to approximately 887,000 households.<\/b> At the same time, we are taking special care to support public servants who work far from their place of residence, people who support critical state functions on a daily basis and keep the public sector running in every corner of the country.\u201d<\/p>\n
\u201cAll of the government\u2019s measures,\u201d the minister said, \u201chave a common denominator: that for a state to be able to continuously support its society, its economy must generate more wealth. There can be no strong welfare state without a strong productive base. That is why this bill is not just about providing relief from the burdens of the present. It is also about creating the conditions for greater prosperity in the future<\/b>.\u201d<\/p>\nWe are changing our production model<\/h3>\n
Greece, he added, \u201chas been gradually changing its production model in recent years. The indicators reflect a deeper transformation. They show that the Greek economy is becoming more productive, more outward-looking, and more competitive. And if we want to accelerate this transition, we need more investment, more productive capital, and more financing for businesses that want to grow, innovate, and create well-paying jobs. This is precisely what the provisions of the bill on investment funds are designed to achieve. With this bill, we are establishing\u2014for the first time in Greece\u2014a modern and competitive framework for the management of alternative investments, with the aim of attracting international investment funds, managers, and highly specialized professionals to Athens<\/b>. What we offer is legal certainty, stability, and clear rules. <\/p>\n
We clarify that foreign funds and their parent companies continue to be taxed where they are established<\/b>, while all actual economic activity carried out in Greece (offices, services, salaries, corporate profits, and VAT) is fully taxed here. In other words, we are creating a framework that attracts capital without eroding the country\u2019s tax base. And the benefit for Greece is much greater than the immediate tax revenue. A strong investment management hub in Athens means new, well-paid jobs, the transfer of know-how, and the development of an entire high-value-added ecosystem. We do not want Greece to be merely a place where capital is consumed. We want it to become a place where capital is managed. A place where decisions are made. A place where economic value is generated. And that is precisely what this reform aims to achieve.\u201d<\/p>\n
The minister emphasized, among other things, the provisions of the crackdown on illegal economic activity and gambling<\/b>, and concluded that the common thread linking all the articles of the bill is that \u201cwe do not let problems drag on. We do not let injustices become entrenched. We do not allow distortions to become entrenched. We intervene, we solve, we correct. This is the essence of the policy of Kyriakos Mitsotakis\u2019s government. We do not remain mere observers in the face of difficulties, but take on the responsibility of finding solutions. This is our duty. This is our responsibility. And this is the responsibility we are fulfilling today.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
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