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ATHENS – Greece’s out-of-court debt settlement program has reached a milestone, with total restructured debts hitting €10.9 billion by March 2025—more than double last year’s figure. According to the Ministry of National Economy and Finance, over €3.4 billion in debts have been written off under the scheme, offering a lifeline to thousands of households and businesses.
Debt Settlement Surge in March
The volume of successful settlements through the Out-of-Court Debt Resolution Mechanism jumped 35.7% year-on-year in March 2025. A total of 1,475 settlements were completed, restructuring €454 million in debt, up from €355 million across 1,087 cases in March 2024.
Key March 2025 Highlights:
- 5,340 new applications submitted
- 3,080 finalized applications
- 3,173 vulnerable households benefited, a 31% increase vs December 2024
- 183 foreclosures suspended through prepayment arrangements
Total Program Impact to Date
Since inception, the program has delivered:
- 33,432 successful settlements
- €10.9 billion in restructured debt
- 117% increase from March 2024 (15,408 settlements, €5.52B debt)
Debt Write-Offs: Over €3.4 Billion Erased
The mechanism facilitated the forgiveness of over €3.4 billion in debts to:
- Public sector (Tax Authority, KEAO, etc.)
- Financial institutions (banks, loan servicers)
Average Write-Off Rates:
- 15% for debts to the state
- 30.4% for debts to financial institutions
- Nearly 50% of settlements with banks included write-offs exceeding 30%
Expanded Access & Digital Services
To improve accessibility and uptake, the General Secretariat for Private Debt Management offers nationwide support via:
- Phone appointments: 213.212.5730
- Video calls: Gov.gr Platform
Looking Ahead
The Ministry continues to promote the out-of-court mechanism as a key tool for tackling Greece’s private debt challenge. With settlements and debt forgiveness surging, further reforms and digital tools are expected to enhance efficiency and outreach throughout 2025.
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