The Greek government is taking action to pass a law that would strengthen consumer protection in the retail banking market by limiting the total amount of repayment of consumer loans to 100,000 Euro’.
Greek Prime Minister Kyriakos Mitsotakis presented the plan as part of a weekly review of the government's work, stressing the need to halt malicious practices and pressure “ince on credit contracts.
Under the offer, the total amount that the borrower has to repay, including interest and fees, is equal to the amount of capital borrowed by the “ lender, as is the case on average in other European countries. %From 30 to %It will be limited to over 50 levels. In a Facebook post on Sunday, the prime minister said: “These are regulations that I believe create a clearer and fairer framework for everyone, ”.
The upper limit will mainly apply to unsecured consumer loans, as well as credit card debt, where high interest rates and complex fee structures are recorded over time.
A waiting period of 14 days is also foreseen from the signing of the contract, thus strengthening the rights of borrowers and increasing transparency.
A market that is improving, but at a high cost
The intervention came at a time of gradual recovery of consumer loans in ’, Greece, after years of contraction caused by the debt crisis.
GreeceDemand for consumer loans in ’ has strengthened since 2022’, while borrowing costs remain high compared to other loan categories.
Interest rates on consumer loans often While exceeding ’, interest rates on rotary credit products such as credit cards %It can exceed 14’.
The combination of rising demand and high interest rates raises concerns about excessive borrowing, especially for the most vulnerable households.
Banking applications are being examined
The new initiative is part of the government's broader effort to combat banking practices that burden consumers.
Topics under scrutiny in recent years included fees and terms not easily understood by customers, the high cost of basic banking services such as transfers and account maintenance, and limited competition in retail banking.
At the same time, the government is pressuring banks to raise deposit rates at a time when interest rates are rising, accusing banks of being slow to pass these benefits on to savings holders.
Greek banks have returned to stable profitability in recent years after extensive consolidation and a decrease in follow-up loans.
