Greece’s out-of-court debt mechanism offers long-term repayment and possible write-offs, but borrowers may also pursue bilateral deals or legal options

Greece is introducing a system to flag customers with unpaid electricity bills, blocking serial non-payers from switching providers to dodge their debts

Overdue public sector payments climbed by €251 million in the first half of 2026, with pending tax refunds surging to €788 million even as hospitals trimmed their supplier backlog.

The government is relying on primary surpluses and early debt repayments to accelerate the decline, with two more repayments totaling €4.7 billion planned by the end of 2026.

Greece's public sector owes nearly €3.9 billion to suppliers, taxpayers, and pensioners, with public hospitals alone accounting for more than €1.5 billion in overdue payments

A new 72-installment repayment plan for overdue social security debts launches in June, but critics say the terms still fall short for struggling professionals and farmers

Among member states, the highest debt-to-GDP ratios at the end of Q2 2025 were recorded in Greece (151.2%).

The latest repayment is expected to reduce the overall debt and improve the country’s creditworthiness, as Greece has now returned to investment-grade status.

Looking ahead, Societe Generale anticipates the European Central Bank to commence interest rate cuts starting in June, with quarterly reductions of 25 basis points (or totaling 75 basis points for the year).