Greece’s Ministry of National Economy and Finance is launching a sweeping debt-settlement bill designed to provide financial relief to approximately 1.5 million distressed individuals and businesses burdened by a private debt mountain that has surpassed €240 billion.
The centerpiece of the legislative package is an extraordinary 72-installment repayment plan targeting overdue debts to the Tax Administration and the social security fund, EFKA.
The program applies exclusively to obligations that became overdue on or before Dec. 31, 2023.
Eligible taxpayers can apply electronically beginning mid-July through Dec. 31, 2026.
To qualify, debtors must have submitted all income tax returns for the past five years up to Dec. 31, 2025, and have settled any other outstanding liabilities via standing payment programs. Convicted tax evaders and smugglers are explicitly barred.
The ministry has capped the minimum monthly payment at €30, carrying a fixed 5.84% interest rate.
However, the arrangement will be forfeited if a participant misses two consecutive installments.
The bill also introduces measures to restore market liquidity by allowing taxpayers to unblock frozen bank accounts upon paying a one-time lump sum of 25% of their total debt and regulating the remainder.
Concurrently, the government is increasing the statutory protected bank deposit threshold from €1,250 to €1,600 for state and bank liabilities.
Officials framed the package as a critical intervention to shield households and small-to-medium enterprises from asset seizures while recovering a portion of the country's massive non-performing private debt portfolio.