Greece raises bank account seizure thresholds and opens 72-instalment debt scheme for 1.5 million borrowers

What the bill changes for protected account limits

The omnibus bill submitted by the Ministry of National Economy and Finance on the evening of 15 June 2026 rewrites the rules on bank-account seizures. For debts owed to the tax authority, the monthly untouchable threshold rises from €1,250 to €1,600 per natural person, applicable to one declared account per institution. That adds €350 of extra protection each month, or €4,200 annually, for anyone whose account has been frozen by the tax office. For debts owed to banks and other private creditors, the individual-account floor also climbs, from €1,500 to €1,600 (a gain of €100 a month, €1,200 a year). Joint household accounts get a parallel lift: the shielded amount for private-to-private claims moves from €2,000 to €2,200 per month, equivalent to an additional €2,400 of annual cover.

To activate the tax-office protection, the debtor must electronically declare a single IBAN to the Independent Authority for Public Revenue (AADE). If a salary, pension or welfare-payment account exists, that account must be designated exclusively. The new limits take effect after the bill is voted into law, which is expected by the end of June.

Unblocking already-frozen accounts

The bill also introduces a one-off right to lift an existing seizure. A debtor who pays 25% of the principal debt that triggered the freeze, together with the corresponding surcharges and interest, can have the restraint removed. The provision covers both current and legacy freezes, offering an exit to people whose accounts have been locked for long periods. The relief is granted only once per debtor, and exceptions are carved out for cases where the debtor has entered bankruptcy or insolvency proceedings.

The 72-instalment settlement and extrajudicial mechanism

The package targets roughly 1.5 million debtors of the tax office, the social-insurance fund (EFKA), banks and loan servicers. A centrepiece is a new exceptional 72-instalment arrangement for arrears to the tax authority and EFKA that became overdue by 31 December 2023. Applications must be submitted electronically by 31 December 2026, with the platform expected to open by mid-July. The minimum monthly instalment is set at €30 and the interest rate is fixed at 5.84% for the life of the plan. Missing two consecutive instalments or generating new unregulated debts triggers exclusion.

The extrajudicial mechanism is also being widened. Natural and legal persons with debts above €5,000 can now enter, even if those debts are being serviced normally. Public and social-insurance debts can be restructured over up to 240 instalments, while bank and servicer claims can stretch to 420 instalments. A partial write-off remains possible, with a fixed 3% interest rate throughout the arrangement.

Being in a better position than the rest of Europe does not mean we will not deal with the issue.

Primary-home protection and other provisions

From 21 September 2026, a new rule allows the primary residence to be separated from the debtor's other assets within the extrajudicial framework. The home can be excluded from liquidation, while the debtor obtains more favourable repayment terms, lower instalments and a repayment horizon that can reach up to 35 years. In exchange, other assets are earmarked for utilisation or sale.

Beyond the debt chapters, the bill extends a 50% flat reduction on hybrid-vehicle registration tax until 1 January 2027, regardless of CO₂ emissions. Hybrid electric cars with emissions at or below 75 g/km that were imported between 1 November 2025 and 31 May 2026 and not yet registered qualify for a 75% exemption. A separate clause, effective 1 July 2026, addresses a long-standing public-sector pay anomaly: roughly 1,500 civil servants in specific agencies will see their personal-wage differential replaced with regular pay of up to €300 per month, correcting an imbalance that has persisted since 2011. A provision also shields a Ministry of Education benefit for hearing-impaired pupils from seizure.

What it means for the economy

The interventions land against a backdrop of private debt that exceeds €240 billion, around 95% of GDP, below the European average of 121% of GDP but still a concern for the government. The measures are designed to be activated gradually from early July through the autumn, giving households and businesses additional tools to manage their liabilities while reinforcing protections on deposits and the primary home.