The Plenary Session of the Greek Council of State (CoS), the country’s supreme administrative court, issued a significant ruling in favor of borrowers alleviating the pressure from thousands of cash-strapped Greek citizens.

By a broad majority, the Plenary decided that interest on loans of borrowers who have been included in the “Katselis Law” framework will be calculated based on the monthly installment rather than on the total outstanding amount.

The ruling favors approximately 350,000 borrowers, as their loan installments are now being drastically reduced—effectively rendering the loans almost interest-free. According to information, 35 senior judges voted in favor of the borrowers, while 12 voted against.

The issue was referred to the Supreme Court by the Magistrates’ Court of Ioannina, as dozens of courts across the country had issued conflicting rulings regarding how interest should be calculated on such loans.

During the hearing held one year earlier, in February 2025, the then Prosecutor of the Supreme Court, Georgia Adilini, had also taken a position in favor of borrowers, recommending that interest be calculated on the monthly installment and not on the total debt.

In particular, during the proceedings, Ms. Adilini noted, among other things, that “a key criterion is safeguarding the debtor’s dignified standard of living and that of their family, combining the greatest possible satisfaction of creditors with the fundamental protection of personal dignity and, consequently, ensuring and maintaining a minimum standard of living for the debtor and their dependent family members.”