New Extrajudicial Mechanism Protects Primary Residence While Restructuring Debt

The Greek Ministry of National Economy and Finance introduced a strengthened extrajudicial debt-adjustment system that separates a borrower’s primary residence from other real-estate holdings. Applicants submit their request through an online portal, and the mechanism calculates a new repayment schedule based solely on the home’s market value, resulting in a reduced principal and more affordable monthly payments. In exchange, debtors consent to a streamlined auction of their other assets.

For vulnerable borrowers, creditors are required to present a protective proposal that includes home preservation and asset liquidation. Acceptance of the offer is optional; refusal leads to a standard extrajudicial proposal without forced sale of other properties. Once the restructuring contract is signed, any forced execution or seizure of the primary residence is prohibited, and the agreement gains the force of an enforceable title.