Greece sets 3% fixed rate for vulnerable debtors and raises servicer fines tenfold

A fixed 3% rate for indebted households

Greece's Minister of National Economy and Finance, Kyriakos Pierrakakis, announced two new measures to the parliamentary Standing Committee on Economic Affairs on 3 November 2026. The first sets a fixed annual interest rate of 3% for borrowers who restructure their debts through the out-of-court mechanism. It covers two groups: vulnerable debtors who meet the income and asset criteria and hold a vulnerable debtor certificate, and eligible debtors under article 14 of law 4738/2020, a category the announcement says includes the entire middle class. The rate would stay at 3% for the whole repayment period, whether or not the debt is backed by collateral and regardless of the category of lender. Applying the fixed rate would be a mandatory term of the restructuring contract, and the amendment applies to payments from 1 December 2026.

Current, debts with collateral (first three years)3%

Current, debts without collateral (first three years)4%

New fixed rate, vulnerable and eligible debtors3%

Current, debts with collateral (first three years)

3 %

Current, debts without collateral (first three years)

4 %

New fixed rate, vulnerable and eligible debtors

3 %

Data from the article text

What changes from the current regime

Under the existing out-of-court mechanism, the rate is 3% for the first three years on debts with collateral and 4% for the first three years on debts without collateral. After that period, the rate becomes variable and is calculated on the three-month Euribor, plus 2.5 or 3 percentage points respectively. The announcement cites a Euribor level of 2.67%. The first measure is added as a new paragraph 3A to article 14 of law 4738/2020, and the two interventions are included as amendments within a bill that the minister said contains 16 measures in favour of citizens.

Tenfold fines for servicers

The second measure concerns the fines the Bank of Greece can impose on servicers, the companies that manage loan claims. The current maximum is 500,000 euros. Under the new rule it rises tenfold to 5 million euros, and it applies when servicers do not follow the out-of-court procedure or create obstacles for the borrower. The increase is set out in the same amendments as the fixed rate, so both measures would enter into force through the same legislation. Not every report describes the change the same way: one headline calls it a doubling, while the figures given in the announcement show a tenfold increase.

Current ceiling500,000

New ceiling5,000,000

Current ceiling

500000 EUR

New ceiling

5000000 EUR

Data from the article text

Stated aims and open questions

According to the announcement, the measures aim to reduce the cost of repaying debts, make monthly instalments more predictable and strengthen sanctions against companies that breach their obligations to borrowers. The provisions are part of the bill on private debt, which is being debated in parliament at the time of the announcement. The sources do not give a date for the committee or plenary vote on the bill. The fixed rate applies to payments from 1 December 2026, which is the only effective date stated in the reports.