Out-of-court mechanism: lower debt threshold

Changes in the out-of-court debt settlement mechanism take effect from Monday, 21 September 2026, according to Newsbomb. The debt threshold for entry into the mechanism is lowered from 10,000 to 5,000 euros, an expansion that, as the same publication notes, allows more debtors to submit applications from the new date onward. In parallel, as reported by To Vima, part of the changes concerns protection of the primary residence, one of the basic objectives of the mechanism since its establishment, with both sources agreeing that 21 September 2026 is the date for activation of the new framework of eligibility rules.

The out-of-court mechanism functions as a debt settlement tool for banks, tax authority, and insurance funds, enabling settlement outside courts for those unable to meet their obligations. According to To Vima, the changes taking effect from 21 September 2026 aim to expand access to the tool, with the lower entry threshold now covering smaller debts that until now remained outside the scope due to the higher 10,000-euro threshold that was in effect until now. Newsbomb adds that the change affects both natural persons and legal entities meeting the other entry requirements. The same publication notes that the threshold reduction is part of broader revision of the mechanism’s operating rules. More details on the debt settlement framework are found in the Economy section.

For households with smaller debts, the reduction of the threshold from 10,000 to 5,000 euros, as reported by Newsbomb, means that cases that until now did not meet the conditions due to low debt amount can now request entry into the mechanism. The reference by To Vima to primary residence protection directly concerns borrowers who risk losing their home due to arrears, making the settlement a tool for mitigating this risk for vulnerable households. Both sources emphasize that the expansion of scope is expected to increase the number of applications submitted in the coming weeks, as more debtors now meet the entry criteria into the settlement from Monday, 21 September 2026 onward.

Based on Newsbomb, from Monday, 21 September 2026, new applications can be submitted under the revised terms of the mechanism. Interested debtors are called to inform themselves of entry conditions, as both sources do not mention a specific deadline for the application submission period or details on interest rates or number of repayment instalments. To Vima notes that implementation of the change will be monitored by the competent services, but provides no further details on any future modifications to the framework. Regarding other economic measures being applied during the same period, see also the article on pre-payment of OSDE.