Greece is lifting the floor on protected bank deposits to €1,600, a 28% increase on the limit set over a decade ago, Finance Minister Kyriakos Pierrakakis announced in parliament on Friday. The new threshold surpasses cumulative inflation of 20.8% recorded since the limit was last set, in 2015, and according to the head of Eurogroup it will shield a larger portion of household savings from seizure over debts owed to the state or to banks.
The minimum balance that creditors, including the state tax authority and banks, are prohibited from touching when pursuing debt recovery applies to individual deposit accounts and is intended to ensure that debtors retain enough funds to cover basic living expenses.
“In 2015, the SYRIZA government set the seizure-exempt threshold at €1,250. That was the Greece of fiscal suffocation,” Pierrakakis said. “Raising it to €1,600 is an act of justice and an act of trust toward society.”
The minister framed the move as a reinforcement of household financial security and said it would benefit thousands of debtors. He also noted that the non-performing loan ratio had fallen to 3.3%, and stressed the importance of supporting borrowers who continue to meet their obligations.
