Greece's out-of-court debt mechanism: applications at a six-month high in October 2026, but fewer restructurings completed
The finance ministry's October 2026 report shows more borrowers applying to restructure their debts, and fewer agreements signed than in September. The fixed 3% rate Parliament voted on 5 November 2026 is not yet law.
6We read 6 sources, 5 in Greek, 2 of them official documents, including the ministry's 17-page October 2026 progress report, so you can read this in 3 minutes. What we checked ↓
At a glance
- Final applications to Greece's out-of-court debt mechanism reached 4,144 in October 2026, which the finance ministry calls a six-month high; 7,003 new applications were started. 2
- New successful restructurings fell to 1,965 in October 2026, covering €523.82m of original debt, against 2,237 and €640m in September as reported by Taxheaven. 23
- The mechanism currently holds 159,170 applications and €61.45bn of debt; only 9% of that debt is up to date with payments, according to the ministry's report. 2
More indebted households and businesses applied to Greece's out-of-court debt mechanism (εξωδικαστικός μηχανισμός, exodikastikos michanismos) in October 2026, but fewer restructurings were completed than in September.23 The mechanism is the platform through which borrowers ask financial institutions and the state to restructure their debts.2 The figures come from the October 2026 progress report of the Ministry of National Economy and Finance (Υπουργείο Εθνικής Οικονομίας και Οικονομικών, Ypourgeio Ethnikis Oikonomias kai Oikonomikon), published on 6 November 2026.12
How many borrowers applied in October 2026?
Final applications to the out-of-court mechanism reached 4,144 in October 2026, which the ministry's report calls a six-month high.2 Borrowers started 7,003 new applications in October 2026, the second month running above 7,000, according to the ministry.12 September 2026 had almost 2,986 final applications, Taxheaven reported.3 By our calculation, final applications rose by 1,158, or about 39%, from September to October 2026.23
Did completed restructurings rise too?
No. The out-of-court mechanism produced 1,965 new successful restructurings in October 2026, covering €523.82m of original debt.2 In September 2026 there were 2,237 new restructurings covering €640m, according to Taxheaven.3 By our calculation, that is 272 fewer restructurings (about 12%) and roughly €116m less debt (about 18%) in October.23 The ministry does not explain the fall.1
Of October's 1,965 restructurings, 552 came under law 5193/2025.2 The ministry attributes those 552 to the mandatory participation of creditors.1
What do the totals show?
The out-of-court mechanism had produced 72,232 successful restructurings by the end of October 2026, covering €21.77bn of original debt.2 The average restructured debt is about €301,000.2 By our calculation, September's reported total of 70,244 plus October's 1,965 gives 72,209, which is 23 short of the ministry's figure; neither source explains the gap.23
Self-employed individuals (επιτηδευματίες, epitidevmaties) account for 68.25% of all successful restructurings.2 Some 6,300 applications are waiting for the first instalment to be paid.2 The average write-off is 13.46% on debts to the state and 28.21% on debts to financial institutions.2 Average repayment periods are 16 years for debts to the state and 15.7 years for debts to financial institutions.2
Whose debts are in the mechanism?
The out-of-court mechanism currently holds 159,170 applications covering €61.45bn of debt.2 Self-employed individuals owe 59.5% of that debt, and 74% of it is owed to financial institutions, meaning banks and the servicers that manage loans for their owners.2
Only 9% of the debt in the mechanism is up to date with payments.2 Debts above €1m add up to €36.25bn, or 59% of the total.2 The largest group of applications, 39.2%, involves debts of €50,000 to €200,000.2
Attica holds 31.62% of the debt in the mechanism and Central Macedonia 13.82%, together about 45%.2 Crete is third, with 8.73%.2
What about main homes and vulnerable borrowers?
By 31 October 2026, 1,175 applications had used the down-payment measure, and 674 of them ended with a suspended foreclosure auction.2 The ministry says 675 borrowers started an application to save their main home in less than a month and a half after a new arrangement went live on 21 September 2026.1 Vulnerable borrowers had filed 13,644 applications by 31 October 2026, of which 8,465 ended in a restructuring, 603 of them for people with disabilities.2
When does the fixed 3% rate apply?
Parliament voted on 5 November 2026 for a fixed 3% interest rate for vulnerable and "eligible" borrowers who restructure debts to financial institutions through the mechanism.16 The ministry says the rate would apply to payments from 1 December 2026.1 When we checked on 7 November 2026, the law had not yet been published in the Government Gazette (ΦΕΚ), so it was not yet in force.6 Our explainer on the loan servicers bill covers what else the bill changes.6
iefimerida and Business Daily reproduced the ministry's figures without adding new data.45
What we checked
Highlights from our fact-check against the original Greek documents. Every claim in the article went through the same check.
- Confirmed
iefimerida reported 4,144 final applications in October 2026, 1,965 new successful restructurings and 72,232 in total, covering €21.77bn of debt.4
The ministry's October 2026 report gives the same figures: 4,144 final submissions, 1,965 new restructurings (€523.82m) and 72,232 in total with €21.77bn of original debt.2
- Confirmed
Business Daily reported that €21.77bn of debt had been restructured through the out-of-court mechanism to October 2026.5
The ministry's report gives 72,232 successful restructurings with €21.77bn of original debt in total.2
What we don't know yet
- Why completed restructurings and the debt they covered fell in October 2026 while applications rose. The ministry gives no reason.
- How many of October's 4,144 final applications will end in a restructuring.
- Why September's cumulative total (70,244) plus October's 1,965 new restructurings comes to 72,209, 23 fewer than the 72,232 the ministry reports for the end of October.
- Whether the fixed 3% rate will cover existing out-of-court restructurings on instalments paid from 1 December 2026, or only new ones, and when the law will be published in the Government Gazette (ΦΕΚ).
«Σε υψηλό εξαμήνου οι υποβολές, ψηλά για δεύτερο συνεχόμενο μήνα οι εκκινήσεις - 4.144 και 7.003 αντίστοιχα»
Submissions at a six-month high, starts high for a second month running: 4,144 and 7,003 respectively. (in our translation)
Sources
- Υπουργείο Εθνικής Οικονομίας και Οικονομικών (Ministry of National Economy and Finance) · Εξωδικαστικός Μηχανισμός: Ρεκόρ εξαμήνου με 4.144 οριστικές υποβολές αιτήσεων και πάνω από 7.000 νέες εκκινήσεις τον Οκτώβριο - Νέα μέτρα για την προστασία των δανειοληπτών · 6 November 2026 · in Greek · Open ↗
- Υπουργείο Εθνικής Οικονομίας και Οικονομικών (Ministry of National Economy and Finance) · Έκθεση Προόδου Εξωδικαστικού Μηχανισμού, Οκτώβριος 2026 · 6 November 2026 · in Greek · Open ↗
Passage we quote: Page 2, first bullet
«Σε υψηλό εξαμήνου οι υποβολές, ψηλά για δεύτερο συνεχόμενο μήνα οι εκκινήσεις - 4.144 και 7.003 αντίστοιχα»
Submissions at a six-month high, starts high for a second month running: 4,144 and 7,003 respectively. (in our translation)
- Taxheaven · Εξωδικαστικός Μηχανισμός - Τα 21,2 δις ευρώ έφτασαν οι συνολικές ρυθμίσεις · 6 October 2026 · in Greek · Open ↗ · Archived copy
- iefimerida.gr · Εξωδικαστικός Μηχανισμός: Ρεκόρ εξαμήνου με πάνω από 4.000 οριστικές υποβολές -Νέα μέτρα για την προστασία των δανειοληπτών · 6 November 2026 · in Greek · Open ↗ · Archived copy
- Business Daily · Εξωδικαστικός μηχανισμός: Ρυθμίστηκαν χρέη 21,77 δισ. έως τον Οκτώβριο · 6 November 2026 · in Greek · Open ↗ · Archived copy
- AgentNews.gr · Greece's Parliament has passed the loan servicers bill: what changes for borrowers once it is law · Open ↗ · Archived copy
Every figure in the text links to its source. Our own calculations are marked as such. Translations from Greek are ours. Archived copies are snapshots saved on the Internet Archive when we published.
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