By a wide majority of 35 votes to 12, the Supreme Court ruled that interest on regulated ‘red’ loans should be calculated on the monthly instalment and not on the total amount owed.
The decision overturns the practice followed by debt management companies and investment funds, which had argued that interest should be calculated on the total debt, significantly increasing the financial burden on borrowers.
Under the new interpretation of the law, debtors protected by the Katselis framework can expect significantly lower burdens when repaying their loans. The full reasoning of the decision is expected to be posted on the Supreme Court’s website.\
______________________________________________
Are you seeking news from Greece presented from a progressive, non-mainstream perspective? Subscribe monthly or annually to support TPP International in delivering independent reporting in English. Don’t let Greek progressive voices fade.
Make sure to reference “TPP International” and your order number as the reason for payment.