The legal framework governing non-performing loans and foreclosure

This article provides an overview of the legislative amendments to the legal framework governing non-performing loans and the foreclosure procedure. These amendments were enacted in December 2023 through the adoption of four amending laws, specifically the Courts of Justice (Amendment) Act (No. 2) of 2023, the Law on the Establishment and Operation of the Unified Financial Dispute Resolution Body (Amendment) Law of 2023, the Law on the Establishment and Operation of the Unified Financial Dispute Resolution Body (Amendment) (No. 2) Law of 2023, and the Immovable Property (Transfer and Mortgage) (Amendment) (No. 9) Law of 2023.

The aforementioned legislative reforms aim to address two key objectives: firstly, the regulation of non-performing loans by involving the Financial Ombudsman in the foreclosure process, and secondly, the establishment of a more favourable regulatory framework for mortgage debtors. Additionally, these reforms affirm the existing discretion of the Supreme Court to mandate the Presidents of the District Courts to appoint a specified number of District Judges possessing expertise in adjudicating disputes involving borrowers, guarantors, and collateral providers concerning credit facilities secured by mortgages on primary residences, provided that the estimated value of said residences does not exceed  EUR 350,000.00.

The full article in Greek, is available here.