Greece proposes fixed 3 percent interest rate for vulnerable debtors

Greek Finance Minister Kyriakos Pierrakakis presented two new measures to the Permanent Committee on Economic Affairs of Parliament on November 3, 2026. The proposals are part of a draft law on private debt and debt management companies known as servicers.

The first measure introduces a fixed annual interest rate of 3 percent for vulnerable and eligible debtors who restructure their loans through the out-of-court mechanism. Eligible debtors include those holding a vulnerability certificate under Article 217 of Law 4738/2020 and the entire middle class.

“The maximum fine will increase tenfold, reaching 5 million euros.”

The rate applies for the entire duration of the restructuring agreement and is a mandatory condition of the contract. It does not depend on whether debts are covered by real collateral or on the category of the financial institution.

Currently, interest rates for secured debts start at 3 percent for the first years and rise afterward to Euribor three-month plus 2.5 percent. For unsecured debts, rates start at 4 percent for the first three years and then rise to Euribor three-month plus 3 percent.

The second measure increases the maximum fine that the Bank of Greece can impose on servicers. The fine rises tenfold from 500,000 euros to 5 million euros.

Both measures are incorporated as amendments to the draft law. The package includes a total of 16 measures in favor of citizens.