Communist Party says Supreme Court ruling on indebted households is clear

‘It is clear that interest is calculated on the monthly instalment and not on the principal owed, and that this has retroactive effect, as the KKE had requested with its amendment in July 2024, an amendment that the New Democracy government rejected, while all the other parties had swallowed their tongues,’ the party said.

‘The fact that the New Democracy government, which, like previous governments, systematically provides support to banks, funds and servicers, is attempting to present the obvious as a success, is at least provocative for over-indebted households, which, in combination with the wave of austerity, are facing suffocating conditions,’ it added.

‘Based on the Supreme Court’s decision and its retroactive effect, the KKE immediately demands that the principal owed on loans being serviced be reduced; that the additional amounts be refunded to those who have already repaid their loans under the previous unfair and incorrect interest calculation; and that the cases of all those who lost their arrangement because of these excessive interest charges be reopened, with the cost borne exclusively by the banks and servicers. The government should not even consider covering part of it through the public sector, that is, with taxpayers’ money,’ the party concluded.

Earlier today, the Ministry of National Economy and Finance submitted a new legislative provision concerning the Katselis law (Law 3869/2010), implementing the Supreme Court decision. The provision states that interest in primary residence protection arrangements will be calculated on the monthly instalment rather than on the total principal of the debt, while additional amounts already paid by consistent borrowers will be recognised retroactively as repaid principal.

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