{"id":3716,"date":"2026-05-03T12:05:00","date_gmt":"2026-05-03T09:05:00","guid":{"rendered":"https:\/\/en.tomanifesto.gr\/?p=3716"},"modified":"2026-05-03T12:05:00","modified_gmt":"2026-05-03T09:05:00","slug":"new-rules-for-loans-up-to-e100000-cutter-on-over-indebtedness-and-debt-write-off-video","status":"publish","type":"post","link":"https:\/\/en.tomanifesto.gr\/?p=3716","title":{"rendered":"New rules for loans up to \u20ac100,000 – “Cutter” on over-indebtedness and debt write-off (video)"},"content":{"rendered":"

The new institutional framework for the protection of borrowers<\/strong> promoted by the Ministry of Development attempts to put a definitive end to loan sharks<\/strong>. The issue was also mentioned by Prime Minister Kyriakos Mitsotakis in his review today. <\/p>\n

This is an intervention in consumer credit<\/strong>, aimed at bringing the country in line with European law<\/b>. The aim of this decision is to stop the phenomenon where a debtor is asked to repay two or even three times the original amount. <\/p>\n

The framework covers loans up to \u20ac100,000<\/strong>, unsecured<\/b>.<\/b> It also includes credit cards<\/strong>, where interest rates remain high. <\/p>\n

Right of withdrawal and “safety net” <\/h3>\n

Under the new rules, a borrower will be able to cancel the contract within 14 days<\/strong> of conclusion. <\/p>\n

And the regulation becomes particularly important in a period of punctuality as cards are often used for basic needs, increasing the risk of creating new overdue debts<\/strong>. <\/p>\n

At the same time, a protection mechanism is provided for in cases of debt settlement<\/strong>, in order to avoid excessive charges. <\/p>\n

And the bill, which will be consulted in May, introduces a cap on the debt. As a result, the total amount cannot exceed 30% to 50% above the original principal<\/strong>. <\/p>\n

For example, on a loan of \u20ac100,000, the final debt will not exceed \u20ac130,000 to \u20ac150,000<\/strong>. The final percentage will be determined by a ministerial decision. <\/p>\n

\n
<\/div>\n<\/figure>\n

Where interest rates are today<\/h3>\n

On credit cards<\/strong>, interest rates move: <\/p>\n

    \n
  • from 15,5% to 18%<\/strong> for purchases<\/li>\n
  • \n
  • from 18% to 20%<\/strong> for withdrawals<\/li>\n<\/ul>\n

    On consumer loans<\/strong>, interest rates range between 8% and 15%<\/strong>, depending on the customer’s profile. <\/p>\n

    These high levels explain why debts rise quickly when a loan goes “red”. <\/p>\n

    What will happen to old debts<\/h3>\n

    After the law is passed, if the debt exceeds the allowed limit, the excess amount will be written off automatically<\/strong>. <\/p>\n

    The arrangement will cover: <\/p>\n

      \n
    • debts to banks<\/strong><\/li>\n
    • loans that have been passed on to servicers<\/strong><\/li>\n<\/ul>\n

      Note finally that the impact on balance sheets is estimated to be small and additional projections are unlikely to exceed 200 million. EUR<\/strong>. <\/p>\n

      This is because many of these loans have already been transferred. Management companies are already implementing mortgages<\/strong>, often close to the original principal. This keeps the burden on the banking system under control. <\/p>\n

      .<\/p>\n","protected":false},"excerpt":{"rendered":"

      \n The new institutional framework for the protection of borrowers promoted by the Ministry of Development attempts to put a definitive end to the panotokia. In…<\/p>\n","protected":false},"author":1,"featured_media":3717,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-3716","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"acf":[],"_links":{"self":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts\/3716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3716"}],"version-history":[{"count":0,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts\/3716\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/media\/3717"}],"wp:attachment":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}