Greek government withdraws contested article 23 from private debt bill

What the government withdrew

The finance ministry pulled article 23 from its private debt bill while the text was under review in parliament, and deputy finance minister Dimitris Markopoulos announced the decision in the chamber on 30 October. The article would have added a new article 63E to law 5072/2023. Under it, a debtor who fell more than three instalments behind would let the creditor cancel the arrangement, reviving the original debt minus payments already made. The settlement contract itself would have become an enforceable title, so a creditor could start forced enforcement without first obtaining a payment order or court ruling.

Why opposition parties objected

Lawyers' bodies and opposition parties argued that the clause let servicers and funds order seizures and push auctions on the strength of a private agreement alone. PASOK leader Nikos Androulakis described the risk concretely: where the creditor calculates the amount owed, a short delay on a single instalment could lead to the seizure and auction of a debtor's or guarantor's property. ELAS and PASOK both said the plenary of the bar associations had been excluded from the hearing. The objections centred on the loss of judicial checks that normally protect borrowers before enforcement begins.

Party reactions

PASOK sector head Miliena Apostolaki, a party member of parliament, called the retreat disorderly and said the withdrawal was not enough. She argued that the government first tried to legislate favourable terms for the powerful and then backed down under pressure, and she asked the ministry to amend a series of other provisions. She also noted that the PASOK leader had called for the provision's withdrawal, and she asked the speaker to bring PASOK's bill to the plenary.

“The withdrawal of the provocative provision is not enough.”

SYRIZA's Nikos Pappas, who holds the economic sector portfolio, said the fight over article 23 had been won inside and outside parliament. He accused the government of wanting to let funds legislate and carry out evictions on their own. Pappas added that SYRIZA would keep fighting to abolish the "Heracles" scheme and to set up an inquiry committee on it.

“The battle to withdraw article 23 was won inside and outside parliament.”

ELAS housing sector head Dimitris Lyritsis said the government had been caught out and had fled in disarray. He argued that the retreat did not hide its real intentions, which he described as greater powers for funds and servicers and fewer guarantees for borrowers.

Government response and what comes next

Markopoulos asked opposition parties to vote for the remaining articles of the bill, and he said the new rules would end what he called servicers' recklessness. The remaining articles were still before parliament when the withdrawal was announced.

“We are withdrawing it so that there is no excuse on your part.”

Lyritsis said ELAS expected an attempt to bring back the same rule in another wrapping and that the party would keep pressing on the matter. Apostolaki said PASOK's own bill to protect borrowers should come to a plenary vote, and she called for further safeguards against abusive enforcement.