New private debt bill tightens rules for banks and servicers, introduces 10% crypto tax

The new bill of the Ministry of National Economy and Finance put out for public consultation late yesterday (7 October) seeks to introduce new rules governing the relationship between debtors, banks and loan servicing companies, turning a number of practices that have until now been subject to negotiation into specific obligations for creditors.

The bill includes 16 measures concerning private debt, but the most significant change lies in the procedure for bilateral debt restructurings.

From the Code of Conduct to a Procedure with Specific Deadlines

The most significant change is the replacement of the existing Code of Conduct with a new, autonomous and standardised bilateral restructuring procedure.

At present, the Code of Conduct under Law 4224/2013 serves as an institutional framework for out-of-court resolution and is based on stages involving communication, the exchange of financial information and an assessment of the borrower’s ability to repay. The new system establishes a specific timetable. Creditors will be required to respond to a restructuring request within three months, while the procedure must be completed within a maximum period of six months.

Even more significant is the intervention prior to a foreclosure auction. Three months before the enforcement of the auction, a bank or servicer will be required to submit a specific restructuring proposal to the debtor. The proposal must be substantiated on the basis of the debtor’s income, assets and actual repayment capacity. Where two alternative solutions are available, both must be disclosed, while any rejection of a restructuring proposal must be justified in writing.

End to 30%-50% Upfront Payments

Of particular importance to the non-performing loan market is the introduction of a maximum 15% upfront payment for direct bilateral restructurings.

To date, bilateral agreements have essentially been concluded in accordance with the policies of each bank or servicer, without a statutory uniform cap on upfront payments. The Ministry states that, in practice, upfront payments exceeding 30% and even 50% of the outstanding debt had been required. Under the new provision, 15% will constitute the maximum limit.

The position of debtors who are complying with the terms of their restructuring will also change. For as long as the restructuring remains in force and its terms are being observed, the creditor will not be permitted to terminate it or proceed with the issuance of a payment order, seizure of assets, or continuation of foreclosure proceedings.

The main innovation lies in the consequences of non-compliance with these provisions: the relevant action will be deemed automatically null and void, the debtor will be credited with an amount equivalent to five monthly instalments, and the duration of the restructuring will be extended by five months without any additional charge. Fines ranging from €50,000 to €500,000 will also be imposed.

Greater Transparency

The obligation to provide information to debtors is not new. Since 2024, under Law 5072/2023, servicers have been required to operate electronic platforms through which borrowers can access information such as principal, interest, fees, interest rates, instalments and outstanding balances.

What is now being introduced is a stronger individual right for the debtor. Debtors will be able to request, free of charge, a complete file relating to their debt—including contracts, payment history, interest calculations and detailed charges—and the creditor will have 45 days to provide it.

The key new element is the sanction: if the 45-day period expires without the debtor receiving complete information, interest will cease to accrue on the debt until the requested information is provided.

Servicers to Open Their Books Further

Loan servicing companies will also be subject to enhanced accountability requirements. They will be required to publish annually financial information, corporate governance information, the size and composition of their portfolios, servicing performance, and data concerning borrower complaints.

In addition, each servicer will be required to submit to the Bank of Greece an annual receivables management strategy, setting out collection targets, strategies by loan category, costs, resources, risks and performance indicators.

Additional oversight will be introduced for securitisations backed by government guarantees, under which an independent annual management audit will be conducted, including an examination of the fees and expenses of the parties involved.

Crypto: From a Tax Gap to a 10% Rate

The second major reform concerns crypto-assets. Unlike the provisions on loans, where the bill reforms mechanisms that are already in place, this section essentially establishes a specific tax framework in an area where there has previously been a legislative gap.

Capital gains earned by individuals from the sale of crypto-assets will be taxed at a rate of 10%, with an annual tax-free capital gains threshold of up to €500. The exchange of one crypto-asset for another will not constitute a taxable event.

Returns from staking, crypto-asset lending and liquidity provision will also be taxed at 10% as interest income. The purchase of crypto-assets will be taken into account for the purposes of asset-acquisition presumptions, while no Digital Transaction Tax will be imposed on their sale.

The bill also provides a 12-month window for the voluntary declaration of previously generated capital gains, without penalties or interest, subject to the conditions provided for under the legislation.

The public consultation will conclude on 22 October 2026, ahead of the planned submission of the bill to Parliament during the first week of November.