Androulakis sides with borrowers, demands immediate enforcement of court ruling on loan interest

The court ruling

The Plenary of the Supreme Court (Areios Pagos) has decided that interest on judicially restructured debts should be calculated on the monthly installment, not on the total outstanding capital as had been done until now. The ruling directly affects borrowers with ‘red loans’ – non-performing exposures – who are attempting to put their debts in order through court-sanctioned settlements. Until this decision, lenders routinely computed interest on the full capital, inflating the amounts demanded from borrowers.

Androulakis’ video message

In a video released on TikTok on Thursday, PASOK–KINAL president Nikos Androulakis framed the issue as a choice between borrowers and funds. He addressed those in difficulty with the phrase “If you have a red loan, you have the green to claim”, signalling that the court’s interpretation opens a path for borrowers to challenge past overcharges.

“If you have a red loan? You have the green to claim. The Plenary of the Supreme Court ruled that interest in judicial cases is calculated on the monthly installment and not on the total capital, as unjustifiably happened until now.”

Government’s back-and-forth

Androulakis sharply criticised the government’s public statements, which he described as “back-and-forth and second thoughts” about how to apply the decision. According to the opposition leader, the authorities are “studying how the banks and funds will pay less” rather than ensuring borrowers get immediate relief.

“The government is not studying consequences. It is studying how banks and funds will pay less. Again the funds win and you lose.”

Demands for immediate action

Androulakis set out three concrete steps that PASOK is demanding. First, full and immediate implementation of the ruling. Second, every borrower must be informed of their new monthly installment. Third, any extra amounts already collected must be refunded. He further called for the re-examination of cases where borrowers lost court-ordered protection because they were unable to meet installments that have now been deemed unlawfully inflated.

“It is not a matter of choice, it is a matter of the rule of law. It is your right. Non-negotiable.”

Context note

The Supreme Court’s interpretation could force banks and loan-servicing funds to recalculate thousands of settlement plans and return sums previously demanded in excess. Androulakis’ intervention turns the legal ruling into a political front, pressing the government to act before lenders attempt to limit the fallout.