Greece is introducing a fixed 3% interest rate for eligible borrowers entering debt restructuring agreements through its out-of-court settlement mechanism, while increasing the maximum fines imposed on loan servicing companies tenfold, Finance Minister Kyriakos Pierrakakis announced in parliament on Tuesday.
The two measures will be introduced as amendments to legislation aimed at protecting borrowers and tightening oversight of companies managing outstanding loans, including those transferred by banks to investment funds.
Speaking before the relevant parliamentary committee, Pierrakakis said the government was seeking to reduce repayment costs, provide greater certainty for households and strengthen penalties…