Thousands of additional households and small business owners will gain access to Greece’s out-of-court debt settlement mechanism from July 27, 2026, after the government reduced the minimum eligible debt from €10,000 to €5,000.
The reform, introduced under Law 5313/2026, allows significantly more borrowers to use the digital platform operated by the General Secretariat for the Financial Sector and Private Debt Management to restructure outstanding debts.
Until now, the minimum debt threshold excluded many individuals with smaller liabilities, leaving them vulnerable to bank account seizures, enforcement measures and property auctions.
Under the new rules, borrowers with total debts exceeding €5,000—including obligations owed to Greece’s tax authority (AADE), the e-EFKA social security fund (KEAO), banks or consumer lenders—can apply through the platform for a comprehensive debt settlement.
Around One Million More Borrowers Eligible
The General Secretary for the Financial Sector and Private Debt Management, Theoni Alampasi, said the mechanism had already proven its value.
“With more than 64,000 debt settlements covering approximately €20 billion, the out-of-court mechanism has earned citizens’ trust as an objective and reliable tool for restructuring debt,” she said.
Alampasi added that reducing the eligibility threshold from €10,000 to €5,000 would allow smaller debtors to regularise their financial obligations and protect their assets from compulsory enforcement measures.
She said the expanded eligibility could make around one million additional public-sector debtors eligible to participate, describing the reform as the fulfilment of a long-standing request from households and businesses.
Key Benefits
Eligible applicants will receive the same protections already available to larger debtors, including:
- Automatic suspension of enforcement measures, including seizures and collection actions, once an application is formally submitted.
- Repayment plans of up to 240 monthly instalments (20 years) for debts owed to the state.
- Repayment plans of up to 420 monthly instalments (35 years) for debts owed to banks and investment funds.
- Potential debt write-downs, including reductions in surcharges or even principal amounts, where the applicant’s income and assets meet the required criteria.
Important Conditions
Applicants should note several key rules before submitting an application.
The minimum monthly repayment has been set at €50, making the scheme more affordable for lower-income households.
Only borrowers whose combined debts exceed €5,000 qualify for the mechanism. Those with debts below that threshold must instead seek relief through Greece’s standard or extraordinary repayment arrangements.
The platform also determines the repayment proposal based on each applicant’s financial circumstances. Borrowers cannot choose the number of instalments themselves and must either accept or reject the proposal generated by the system.
Before applying, applicants must also consent to checks on their income and assets, allowing the platform’s algorithm to calculate an affordable monthly repayment amount.