New out-of-court debt settlement platform opens on Monday
A new electronic platform for Greece's debt settlement mechanism launches Monday, featuring lower eligibility thresholds and flexible repayment options.Summary
Greece is launching a revamped electronic platform for out-of-court debt settlements this Monday, designed to help a larger number of borrowers restructure their debts. The scheme covers debts owed to the state (tax authority and EFKA), banks, and loan servicing companies. Notably, the eligibility threshold has been lowered from 10,000 euros to 5,000 euros, a move expected to include approximately 1 million additional debtors.
The new system offers increased flexibility, allowing small debtors to make monthly installments starting from 50 euros. Repayment plans can span up to 240 installments for state debts and up to 420 installments for bank-related debts. The entire application process is handled online, where an algorithm calculates a restructuring plan based on the applicant's income, assets, and financial obligations.
To ensure long-term sustainability, the mechanism may allow for a partial write-off of the principal debt under specific conditions. All restructuring plans under this new mechanism will carry a fixed interest rate of 3% for the duration of the repayment period.
(Source：Naftemporiki Gr)