The so-called Katseli law on the protection of borrowers is about to be abolished by a bill currently being debated in Parliament for accelerating the processing of approximately 40,000 pending applications.
If the draft bill is approved by lawmakers, debtors seeking protection will have to submit new applications laying out their case, under a tight timetable with a June 2021 deadline.
This way, applications based on the law that was passed in 2010 will be updated and the data cited in them will be inspected, as borrowers will have to give up their right to bank and tax confidentiality. Those who do not meet requirements will have to abandon their effort for protection.
The bill notes that according to the available data, a significant portion of the cases based on the law named after former economy minister Louka Katseli never even make it to court: This applies to around a quarter of all cases and concerns strategic defaulters.