A new regulation that clarifies how monthly installments are calculated and paid for loans that have been included in active arrangements under the Katseli Law (Law 3869/2010).
Upon publication of the relevant Government Gazette, this month’s installments will be calculated based on the new interest rate framework, while any amounts overpaid under the previous system will be applied to the loan principal, thereby reducing the final installments of the repayment plan, without altering the amount of the monthly payments set by the court.
In an announcement, the Ministry of Finance said that the regulation applies to loans subject to an active repayment plan that has not yet been completed under Article 9 of Law 3869/2010, as well as to cases where the conditions for declaring the borrower in default had not been met when the new provision came into force.
The General Secretariat for the Financial Sector and Private Debt Management said borrowers who are already in an active repayment plan and need clarification on the exact amount of their monthly instalment should contact their bank or the loan servicer managing their debt.
The calculation of any overpaid amounts will be carried out by creditors and is expected to take several months, due to the volume of loans involved and the need to process data through creditors’ systems.
According to the ministry, any excess amount will be treated as repayment of capital and deducted from the last instalments due under the court-approved repayment plan. The amount of the monthly instalments set by the court will remain unchanged, with interest calculated on a monthly basis.
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