Greece's parliament has passed a major omnibus bill that retroactively slashes interest rates and monthly payments for more than 100,000 borrowers who have stayed current on court-mandated debt repayment plans under the country's so-called Katseli Law protections.
The legislation applies retroactively from April 1, 2019, sharply cutting monthly installments and effectively eliminating ongoing interest for debtors who have consistently honoured their repayment schedules.
Minister of National Economy and Finance Kyriakos Pierrakakis defended the reform against fierce opposition criticism, calling the long-standing interest calculation dispute a "ticking time bomb."
He said the government opted for comprehensive legislative action rather than minimal compliance with a recent Supreme Court ruling on the matter.
Under the new formula, monthly payments on a typical 100,000-euro mortgage will fall from 612 euros to 433 euros, with monthly interest reduced to just 1.40 euros — yielding lifetime savings of up to 46,000 euros.
Overpayments made since 2019 will be credited forward, clearing roughly 15 installments and allowing borrowers to complete their repayment terms 15 months early.
The opposition was sharply critical.
Sokratis Famellos of Syriza accused the government of acting only under outside pressure, while Pavlos Geroulanos of PASOK said the bill plagiarized opposition proposals.
Dimitris Koutsoumbas of the Communist Party and Kyriakos Velopoulos of Greek Solution voted against the broader package, calling it insufficient and overly protective of commercial banks and investment funds.
Mr. Pierrakakis dismissed the criticism, noting the bill also introduces new protections against bank account seizures alongside additional public sector and pension support measures.