The out-of-court debt settlement mechanism under Law 4738/2020, which replaced the previous framework of Law 4469/2017, constitutes the primary tool available to debtors for restructuring their liabilities towards financial institutions (banks and loan servicers) and public entities (the State, the Social Security Fund, municipalities).

Moreover, the amendments introduced at the end of 2022 and the beginning of 2023 — including the reduction of interest rates on restructuring plans, the ability to prepay the arrangement without paying interest on debts owed to the State, and the exclusion of already-restructured debts — have made the procedure significantly more attractive for debtors.

Equally important are the provisions introduced by Laws 5072/2023 and 5193/2025, which mandate the acceptance of creditors’ counteroffers by financial institutions in the case of vulnerable and eligible debtors, as well as the rules providing for the cessation (or, where applicable, suspension) of criminal prosecution for the offences of non-payment of debts or social-security contributions.

The mechanism is implemented via an electronic platform of the Ministry of Finance, and its operation commenced on 1 June 2021. Given our extensive involvement in the resolution of insolvency-related matters, particularly for legal entities, the Out-of-Court Mechanism represents another powerful instrument in our toolkit for achieving sustainable restructuring solutions on behalf of our clients.

Our involvement with the electronic platform of the out-of-court debt settlement mechanism began even before the law entered into force. The experience we have gained through the numerous applications we have handled over the years enables us to address every potential legal and technical issue that may arise—from the creation and submission of an application to the successful conclusion of a debt restructuring agreement.

Within the framework of the Out-of-Court Debt Settlement Mechanism, we provide services covering the entire process up to the completion of the restructuring agreement. Indicatively:

• We undertake the complete management of the electronic platform, from the creation of the application to the conclusion of the procedure.
• We collect all necessary financial data and perform cross-verifications with the information automatically retrieved by the platform from creditors.
• We complete and submit the debtor’s application, uploading all documents required by law.
• We communicate with creditors and the representatives of the Special Secretariat for the Management of Private Debt (EGDICH) to resolve any technical or procedural issue that may arise.
• We handle any requests for corrections submitted by creditors, both during the completion of the application and after its final submission.
• We monitor the application on a daily basis, keeping track of all data and developments to promptly intervene and resolve any issue.
• In cases where the debtor’s rights protected under the legislative framework are violated (e.g., suspension of enforcement measures), we recommend and undertake the appropriate legal actions to defend them.
• At the criminal law level, we handle prosecutions for non-payment of debts or social security contributions, ensuring comprehensive legal protection throughout the process.