GREECE Trends and Developments Contributed by: Panagiotis (Notis) Sardelas and Matina Kagkelari, Sardelas Petsa Law Firm
Reforms in collateral law Legal developments include the following. Modernisation of the pledge framework Greek Law 5123/2024, which became effective in 2025, unifies and simplifies the establishment and enforcement of pledges. The digitisation of the pledge registry (Unified Electronic Pledge Registry of the Hel - lenic Cadastre) further streamlines registration proce - dures, searches and enforcement actions, providing enhanced transparency and legal certainty. Receivables management framework (servicers) The regulatory framework governing loan servicing companies is being enhanced with rules for transpar - ency and supervision by the Bank of Greece (BoG) via Greek Law 5072/2023 and BoG Act 244/2025, offer - ing greater certainty to private credit funds that rely on these entities for effective portfolio management. Acceleration of justice and strengthening of enforcement mechanisms One of the long-standing impediments to financing in Greece has been the time-consuming process of dis - pute resolution and enforcement. During 2025–2026, legislative interventions have been implemented or are being advanced to expedite these procedures. Reform of the Code of Civil Procedure Through targeted amendments, stricter timelines for trials are being introduced, procedures are being fur - ther digitised (electronic filing of documents, remote hearings), and mediation and arbitration institutions are being reinforced. The goal is to drastically reduce the time required to finalise court decisions, thereby providing greater certainty to creditors, including pri - vate credit funds. Strengthening the Out-of-Court Debt Restructuring Mechanism (EMRO) The EMRO – already in full operation – is being con - tinuously optimised. Legal modifications in 2025–2026 aim to increase its effectiveness and encourage viable out-of-court restructurings, reducing the burden on the courts and offering a faster solution in cases of non-performing loans.
Capital markets reform Published in April 2025, Greek Law 5193/2025 aims to generally strengthen the Greek capital market framework, facilitate business access to capital, and upgrade the supervisory framework for various asset management vehicles, rather than specifically target - ing private credit. The new law did, however, intro - duce pivotal changes that could also impact the pri - vate credit sector. Among others, this law introduced a more flexible decision-making framework for listed bond loans, allowing for successive bondholder meet - ings with reduced quorum thresholds to modify bond terms (even to the detriment of the bondholders). This streamlines the restructuring process for listed corporate bonds. Furthermore, by increasing the pro - spectus exemption threshold to EUR8 million, the leg - islation facilitates more efficient and lower-cost debt issuances for SMEs and mid-market firms. Additional changes impacting private creditors and AIFs include the following. REIC modernisation The law fundamentally revamped the framework for real estate investment companies (REICs), providing greater flexibility in their investment scope, including residential property, tourism activities and data cen - tres. Crucially, REICs are now authorised to grant col - lateral on the assets of their entire group, potentially unlocking greater financing options and more favour - able terms. AIF/UCITS framework updates New provisions were introduced for UCITS and AIFs regarding liquidity risk management tools, such as redemption gates and notice periods. The law also clarified the legal recognition of crypto-assets as law - ful investment instruments, aligning with the EU Mar - kets in Crypto-Assets (MiCA) Regulation. DORA implementation The law adopted national provisions to supplement the Digital Operational Resilience Act (DORA), enhancing the requirements for digital resilience and ICT govern - ance for financial entities, including AIFMs.
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