GREECE Trends and Developments Contributed by: Paris Tzoumas, Zepos & Yannopoulos
cable investment schemes). In cases where the minimum RRF interest rates cannot be used on these grounds, the interest rate for RRF loans may be calculated on the basis of the sum of a margin ranging from 60-1,000 basis points (depending on the credit rating of the investor and the value of the security package of the rele - vant investment) and Greece’s base interest and discount rate as applicable from time to time in accordance with relevant announcements by the EU Commission. RRF loans were extensively used in 2024 (or 2023?) to finance green transition projects, including renewable energy, digital transforma - tion (with the construction of new fibre optic net - works) and extroversion (tourism industry invest - ment plans) projects. The full drawdown of RRF funds being available to finance investment projects in Greece must be concluded no later than 26 August 2026. New legislative framework for pledge rights Law 5123/2024 was published on 19 July 2024 amending (and purporting to codify) the current legislative framework regarding the creation of pledge rights in Greece. The primary aim of the new legislative initiative is to address ongoing issues relating to the establishment and enforce - ment of pledge rights through the development of a unified and modern legal framework which harmonises the rules governing different types of pledges, namely the notional pledge (ie, pledge over movable property without delivery of the encumbered items to the pledgee), pledge on registered instruments, claims, and rights. To this end, certain provisions of the current framework, including, amongst others, provi - sions of the Greek Civil Code, Legislative Decree 17.7/13.08.1923 and Law 2844/2000 regarding notional pledge are repealed.
The new law introduces for the first time the Single Electronic Register of Pledges (“the Reg - ister”), which will be maintained and operated by the Hellenic Cadastre, serving as a central register for pledge rights. All pledge agreements will be registered digitally with the Register, essentially enhancing transaction security and transparency. According to the law’s provisions, the operation of the Register will commence upon the earlier of either the date of issuance of a relevant decision by the Hellenic Cadastre or 31 December 2024. However, such long stop date may be further extended pursuant to a ministerial decision. At the moment of publication of this piece (Decem - ber 2024), the relevant decision has not been issued and the Register is not yet operative, so the substantive part of the new law has not yet officially come into force and the old pledges’ regime still applies. Notably, the new law directly provides that, apart from the pledge rights, the registrations of true sale securitisations transactions, securitisa - tions’ servicing agreements (each as required under Article 10 of Law 3156/2003), as well as NPLs’ outright sales and servicing agreements (as required by Law 5072/2023) must be also registered with the Register following the coming into force of the law. All pledges that have been entered into and established prior to the entry into force of the new law shall be regulated by the provisions applying thereto at the time of their creation and establishment without any need for the parties to cater for the registration of such preexisting pledges to the Register.
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