Relief for Thousands of Debtors: Seizure-Protected Bank Account Limit Raised to €1,600

Government expands protection to include bank debts as well as tax and social security liabilities – New 72-installment debt platform expected in July

A major financial relief measure for households and businesses is set to take effect in the coming days, as Greece raises the seizure-protected bank account threshold from €1,250 to €1,600, offering greater protection to debtors facing account garnishments.

The measure is particularly significant because it will not only apply to debts owed to the tax authorities and social security funds, but also to obligations toward banks.

Speaking to ERTNews, Finance Ministry spokesperson Homer Tsapalos confirmed that the new threshold will cover a broader range of debtors.

“In the coming days, the seizure-protected limit will increase to €1,600 and will apply to debts owed to banks as well, not only to social security funds or the Independent Authority for Public Revenue,” he said.

More than 1.5 Million Beneficiaries

According to Finance Ministry estimates, the measure is expected to benefit more than 1.2 million individuals and approximately 350,000 businesses.

Officials believe the increase will provide meaningful financial breathing room for citizens whose income or deposits are currently subject to seizure procedures.

“Hundreds of thousands of our fellow citizens will benefit. There are around 400,000 businesses and individuals whose accounts are affected by seizures exceeding €1,200,” Tsapalos noted.

The government argues that the reform will improve liquidity for households and small businesses while helping debtors maintain basic financial stability.

What Changes in Practice

Under the new framework, a larger portion of funds deposited into a declared protected account will remain accessible to account holders.

The reform is expected to:

• Provide greater protection for salaries and pensions.
• Improve cash-flow management for self-employed professionals and businesses.
• Ease pressure on households struggling with rising living costs.
• Offer additional safeguards for debtors who are actively complying with repayment plans.

For many citizens, the measure represents a substantial improvement in day-to-day financial security.

New 72-Installment Debt Settlement Platform Coming in July

Alongside the increase in the protected threshold, the Finance Ministry is preparing to launch a new debt settlement platform allowing eligible debts to be repaid in up to 72 monthly installments.

According to Tsapalos, the platform is expected to become operational during July.

The initiative is aimed primarily at taxpayers and businesses facing extraordinary financial burdens and seeking a longer repayment horizon.

Why Existing Debts Won’t Automatically Move to 72 Installments

The government has ruled out transferring all existing 24-installment repayment plans into the new 72-installment scheme.

Officials argue that such a move would create a significant fiscal gap and undermine public revenue targets.

“If we decided to move debts already being serviced through 24 installments into a 72-installment scheme, the state budget would immediately fall off track,” Tsapalos explained.

According to ministry data, current 24-installment arrangements generate between €1.5 billion and €2 billion annuallyin public revenue. Extending all those debts over a much longer repayment period would substantially reduce yearly collections and create budgetary pressures.

Government’s Political and Economic Message

The increase in the seizure-protected threshold is being presented as part of a broader effort to balance fiscal discipline with targeted support for citizens and businesses.

The government’s objective is twofold: to protect vulnerable debtors from excessive account seizures while maintaining strong public revenue performance.

For thousands of Greeks struggling with debt obligations, the rise of the protected account threshold to €1,600 is expected to become one of the most significant financial relief measures introduced this year.

Source: pagenews.gr