In a pivotal moment for the Greek retail banking sector, the Minister of Development, Takis Theodorikakos, has set the timetable for a radical overhaul of the framework governing consumer loans. Speaking to the newspaper "Naftemporiki," the minister confirmed that the bill transposing EU Directive 2023/2225 will be submitted for a vote in Parliament this June, covering loan agreements of up to €100,000. This move is not merely a formal harmonization with EU law, but a concerted effort to shield consumers at a time when the cost of living and interest rates remain stubbornly high.
The Architecture of the New Law: Transparency and Pre-contractual Information
The core philosophy of the new legislation is rooted in eliminating "grey zones" during the credit granting process. According to Mr. Theodorikakos, banks and other credit providers will now be obliged to provide exhaustive pre-contractual information. This means that the borrower must know, with absolute clarity and without fine print, the total cost of credit, the Annual Percentage Rate of Charge (APR), and the consequences of any potential payment delays.
Special emphasis is placed on the advertising of banking products. The new law will set strict limits on how loans are promoted, prohibiting practices that could mislead consumers regarding the ease of repayment or push them into over-indebtedness. The logic is that credit should be a tool for growth, not a poverty trap. Furthermore, a right of withdrawal without justification within 14 days is introduced, giving consumers the time to re-evaluate their decision in a pressure-free environment.
Regulating "Buy Now, Pay Later" (BNPL)
One of the most significant innovations of the bill is the inclusion of modern forms of credit, such as "Buy Now, Pay Later" (BNPL), under strict regulatory control. Until now, many of these services, offered primarily through digital platforms and fintech companies, operated under a regime of limited supervision, as they often involved small amounts or interest-free installments.
However, their rapid expansion, especially among younger demographics, has raised concerns among regulators about the risk of debt accumulation occurring "under the radar" of the official banking system. The new law will require BNPL providers to conduct meaningful creditworthiness assessments, ensuring that customers have the ability to repay their debt without jeopardizing their financial stability. This represents a major step in modernizing the Greek market, which is increasingly following global digital economy trends.
Protection of the Vulnerable and the "Right to be Forgotten"
Within the social dimension of the law, Mr. Theodorikakos highlighted the importance of fair access to credit. A landmark provision of the EU directive being incorporated is the "right to be forgotten" for survivors of serious illnesses, such as cancer. After a specific period following the completion of treatment, medical history can no longer be used as a negative factor in assessing creditworthiness or imposing higher insurance premiums on loans linked to life insurance.
At the same time, the role of alternative dispute resolution bodies is being strengthened. The goal is for any friction between consumers and banks to be resolved quickly and out of court, reducing costs and inconvenience for citizens. The Minister of Development made it clear that the government seeks a balance: on one hand, enhancing market liquidity, and on the other, ensuring total consumer protection from abusive practices.
Economic Implications and Competition
The passage of the law in June is expected to reshape the competitive landscape. With the new rules, traditional banks and new players (fintechs) will compete on a more level playing field. The transparency obligation may initially increase administrative costs for companies, but in the long run, it is estimated to reduce the rates of non-performing loans in the consumer credit category.
In a period where the Greek economy seeks growth through consumption, clarity in the rules of the game is essential. Mr. Theodorikakos, through "Naftemporiki," sent a message of stability, emphasizing that the government is closely monitoring the market and intervening where distortions are observed. The stakes now move to Parliament, where the debate is anticipated with great interest by the business and banking communities.
