Greek government proposes caps on loan interest and limits on debt collection

Greece's Ministry of Finance has released a bill that would impose an upper limit on interest rates for all types of credit, ensuring that total claims cannot surpass double or triple the original loan amount. The cap covers consumer, mortgage and commercial loans, regardless of whether the debt has been transferred, securitized or placed with a servicer. Creditors, including banks, funds and debt-management firms, must recalculate existing claims within six months, removing excess interest, capitalised charges and other fees.

The legislation also sets strict deadlines for bilateral debt-settlement talks, requiring creditors to respond within three months and complete negotiations within six months, with penalties for non-compliance. Additionally, pre-auction payment requests are limited to 15% of the debt, and enforcement actions are barred while borrowers maintain an active repayment plan.