ATHENS –
Debt settlements through the out-of-court mechanism more than doubled in Greece, over the last year, reaching €10.45 billion with 31,953 successful adjustments. A year ago, at the end of 2023, debt settlements amounted to €4.36 billion with 12,025 arrangements, the National Economy and Finance Ministry announced on March 13.
According to the announcement, this upward trend in debt settlements continues. In February, in particular, 1,440 successful settlements were made, corresponding to debts of 437.16 million euros. Similarly, in February 2024, there were recorded 1,222 settlements corresponded to a total of 392 million in debts.
“The reform in the institutional framework of the out-of-court mechanism that we promoted in December 2023 – with an additional ”haircut” of the debt up to 28%, an obligation for banks, servicers and the State to accept the proposal for the vulnerable, the reduction of the interest rate on debts to 3% for 3 years, etc. – led to a more than doubling of regulated debts, which reached 10.45 billion euros. This confirms that the out-of-court mechanism is an effective tool for managing private debt that citizens trust. It is also a typical example of the implementation of real social policy”, said National Economy and Finance Minister Kostis Hatzidakis.
