GREECE Law and Practice Contributed by: Panagiotis (Notis) Sardelas, Matina Kagkelari and Aris Sifakis, Sardelas Petsa Law Firm
• The validity and priority of security over Greek assets are always governed by Greek law and require local registration. The lender must ensure that Greek counsel fully complies with all perfec - tion requirements (eg, registering a mortgage or a non-possessory pledge). • Enforcement procedures in Greece, including sei - zure and sale, must follow Greek law, regardless of the loan’s governing law. Moreover, the FDI screening mechanism (see 2.3 Restrictions on Foreign Investments ), can sig - nificantly impact a foreign entity’s ability to take or enforce security over assets in certain sensitive sec - tors, as enforcement of security might be considered an “acquisition of control” which would trigger the screening mechanism. For other key issues particular to foreign private credit lenders enforcing rights in Greece, see 6.1 Enforce- ment of Collateral by Non-Bank Secured Lenders . 6.5 Timing and Cost of Enforcement A typical judicial enforcement process in Greece often takes between 12 and 36 months for a court-super - vised public auction of immovable property, while enforcement over certain types of pledges may be shorter. Enforcement of a foreign arbitral award can be quicker than a court judgment due to the New York Convention, requiring a summary enforcement order from a Greek court. Expedition of enforcement largely depends on the type of security. • For monetary claims supported by documentary evidence (invoices, checks), a creditor can obtain a payment order quickly (days to weeks), which serves as an immediate enforceable title. Greek Law 5221/2025 makes a significant change in how payment orders will be issued from 1 January 2026, passing the competence from local judges to lawyers, which is expected to expedite the process further. • Under the recent Greek Law 5123/2024, the pledgee (lender) is entitled to collect the pledged claims on their own account, without needing a court order or public auction, after a grace period
of ten business days has passed from the date that the secured debt becomes due and payable. • The attachment of bank accounts can be a very effective and faster method as it freezes funds immediately, though the release of funds is subject to court procedures. • Enforcement of financial collateral can be very fast – potentially one to two weeks for appropria - tion or direct sale – as it bypasses the need for an enforceable title and public auction. Costs are variable, and are generally prepaid by the creditor and then recovered from the debtor’s assets. They usually include lawyer fees, bailiff/enforcement officer fees (proportional to the debt or action per - formed and determined by specific ministerial deci - sions) and court fees. Lenders should also consider valuation costs (when required) and taxes (such as real estate transfer tax, which is borne by the purchaser). Means to limit costs include the following. • Amicable settlements or consensual restructurings are often the fastest and cheapest option, avoiding lengthy court battles. • Utilising payment orders where possible minimises initial litigation costs and time compared to ordi - nary legal actions. The issuance of payment orders by lawyers is expected to lower the cost associ - ated with obtaining an enforceable title. • Ensuring that security documents allow for efficient enforcement methods (such as appropriation under financial collateral law) can significantly reduce costs. • Using a bondholder agent (in a bond loan frame - work) can consolidate actions, potentially reducing overall legal fees. 6.6 Practical Considerations/Limitations on Enforcement Considerations for Lenders Practical considerations for lenders in Greece include the following. The Greek judicial system can be slow, with enforce - ment actions (especially real estate auctions) often subject to numerous procedural challenges and delays that extend the recovery timeline significantly.
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