Greece will impose a 15% cap on upfront payments demanded by debt collection agencies and fines of up to €500,000 for servicers who violate debt settlement agreements, Finance Minister Kyriakos Pierrakakis has announced, as the government moves to tighten oversight of the private debt collection sector.
Speaking on Alpha television's news broadcast, Mr. Pierrakakis said regulators have identified troubling practices among debt servicers that need to be addressed.
"There will be accountability, there will be rules, and there will be consequences," he said. Under the new framework, any auction or seizure carried out while a debtor is complying with a payment plan will be declared void, with violators facing fines up to €500,000 — doubling for repeat offenses.
Mr. Pierrakakis also addressed Greece's ongoing energy support measures, saying the government has allocated €1 billion since the energy crisis began, placing Greece among the top three European countries in total support measures.
He pledged continued monitoring of oil prices and additional heating oil assistance if conditions warrant, while reiterating Greece's push for greater fiscal flexibility from the European Union. "We're not asking for money, we're asking for room," he said, arguing that additional fiscal space would let Greece expand existing support measures further if the crisis worsens.
On Greece's new 120-installment debt settlement program, Mr. Pierrakakis described it as a tool for people who want to pay down debts responsibly, offering "breathing room" for struggling households.
Responding to criticism that the measure doesn't reward consistent taxpayers, he said economic policy must balance fiscal responsibility with support for those who accumulated debt during hard times.
"Economic policy isn't just about saying 'no,'" he said. "It's about giving people tools to do the right thing."
Mr. Pierrakakis closed by affirming that measures announced at the Thessaloniki International Fair will proceed as planned, declaring: "They are absolutely in effect. Full stop."