The Ministry of National Economy and Finance has presented six new improvements aimed at further reducing the private debt.
The improvements concern:
· Increase in the limit of eligible expenses by 100% for the presumed consent of creditors. The measure concerns non-performing debts up to 300,000 euros, enabling more citizens to close their cases without requiring consent. In particular, for lower incomes, the income limit is doubled, making it mandatory to join the extrajudicial mechanism without consent from the servicers.
· Obligation of creditors to file a registration of the debtor’s consent before conducting an auction.
· Institutionalization of the exemption of a debtor for whom bankruptcy proceedings are not opened, but whose name is registered in the solvency register.
· Extension of deadlines for the protection of vulnerable debtors, allowing them to join the interim program that “freezes” auctions and enforcement procedures. The application can be submitted at least 20 days before the auction, that is, until the last minute. In addition, the program is extended by 4 months.
· Expansion of the possibility of settling debts with a State guarantee, as well as through the reorganization process.
· Establishment of a permanent compensation mechanism from private life capital, thus ensuring stable welfare protection for debtors.
According to the latest available data, non-performing loans in the third quarter of 2024 decreased to 67 billion euros from 92 billion euros in 2019, approaching the European average. According to Economy and Finance Minister Kostis Hatzidakis, through the “Hercules 3” program, it is estimated that their number will decrease even further.
