Debt settlements through the out-of-court mechanism more than doubled and reached 10.45 billion euros, with 31,953 successful settlements during the last year. A year ago, at the end of 2023, debt settlements amounted to 4.36 billion euros, representing a total of 12,025 settlements, according to an economy and finance ministry announcement on Thursday.
This upward trend in debt settlements is continuing, the announcement said. Specifically, in February, 1,440 successful settlements were concluded, corresponding to debts of 437.16 million euros. The corresponding figures in February 2024 were 1,222 settlements concluded for debts of 392 million euros.
National Economy and Finance Minister Kostis Hatzidakis stated: "The reform of the institutional framework of the out-of-court mechanism that we proceeded with in December 2023 - with an additional 'haircut' of the debt of up to 28%, an obligation for banks, servicers and the state to accept the proposal for the vulnerable, the lowering of interest rates on debts to 3% for 3 years, etc. - led to a more than doubling of regulated debts to 10.45 billion euros. This confirms that the out-of-court mechanism is an effective tool for managing private debt that citizens trust. It is also a typical example of the implementation of real social policy."