Macro · Athens
Greece opens new out-of-court debt platform on Monday, lowering entry threshold to 5,000 euros for up to 420 instalments
The electronic platform for a revamped out-of-court debt settlement mechanism opens on Monday 27 July 2026, extending eligibility to an estimated one million additional debtors by dropping the minimum debt from 10,000 to 5,000 euros.
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In brief
The new out-of-court mechanism becomes operational on 27 July 2026, accepting applications from Monday via the electronic platform.
Debtors with total obligations above 5,000 euros can now apply, down from the previous 10,000-euro minimum, adding an estimated one million eligible participants.
Debts owed to banks and servicers can be rescheduled across up to 420 monthly payments; state obligations to the tax office and EFKA are capped at 240 instalments, with a minimum monthly payment of 50 euros.
A portion of the principal debt may be written off when needed for settlement viability, based on an assessment of income, assets, and financial capacity, with the arrangement carrying a fixed 3% interest rate.
- Previous Saturday (July 2026)72-instalment settlement scheme activated, showing strong early uptake.
- 27 JulNew out-of-court platform opens, entry threshold lowered to 5,000 euros.
- During applicationDebtor submits income, assets, and consents to lifting tax and banking secrecy.
- After assessmentPlatform proposes number and amount of instalments; partial write-off possible.
A redesigned out-of-court debt settlement platform launches in Greece on Monday, lowering the entry threshold from 10,000 euros to 5,000 euros. The change extends the mechanism to roughly one million additional debtors who owe money to the state (tax office and social security fund EFKA), banks, and loan servicers.
How the mechanism works
The entire process runs electronically. A debtor submits detailed income statements, assets, and financial obligations. The platform computes a settlement proposal specifying the amount and number of monthly instalments, with a minimum payment of 50 euros per month. The interest rate is fixed at 3% for the full duration of the arrangement.
Repayment terms and debt forgiveness
Owed amounts to the tax office and EFKA can be spread over up to 240 instalments, while debts to banks and servicers can extend to 420 instalments. Under certain conditions, a portion of the principal debt can be written off if it is deemed necessary for the viability of the settlement. The assessment takes into account the debtor's income, assets, and overall financial capacity.
Disclosure requirements
To enter the mechanism, debtors must consent to lifting tax and banking secrecy so that creditors gain a clear and complete picture of their financial situation. This is one of the key differences from the separate 72-instalment settlement, which was activated the previous Saturday and is already showing strong uptake.
The two-track settlement framework
Greece now runs two parallel debt settlement arrangements. The new out-of-court mechanism (with the 5,000-euro floor, up to 240–420 instalments, and mandatory disclosure) sits alongside the 72-instalment scheme. Both aim to settle debts on favourable terms, though they differ in scope, entry limits, and procedural requirements.
Debtors must file complete financial records and supporting documents during the application process. The lowered entry threshold is described in reports as a significant relief for small debtors, who can now settle their obligations in multiple equal monthly payments starting from 50 euros.
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