Greece is moving to suspend criminal prosecutions for individuals and businesses with debts to the state, provided they are meeting the terms of officially approved repayment plans. A new amendment, submitted to Parliament as part of a broader bill to boost the country's capital markets, aims to protect compliant debtors from legal consequences while easing the burden on the judicial system.
Under the current law, people with debts exceeding €100,000 to public institutions - including the tax office, social security funds, and state-run enterprises - could face prosecution even if they were consistently repaying their obligations through official arrangements. According to Greece’s Ministry of Finance, this legal framework led to unnecessary hardship and prolonged legal entanglements for thousands, despite their efforts to remain compliant.
The proposed changes would suspend criminal charges for any debtor who is part of a court-approved, legislated, or administratively sanctioned debt settlement plan, or whose debt is under a formal collection freeze. The suspension would remain in force as long as the repayment plan or freeze is active.
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The amendment also addresses cases at various stages of legal proceedings. If no criminal complaint has yet been filed, tax authorities will refrain from initiating one. If a complaint has been submitted but prosecution hasn’t begun, the authorities are required to notify the prosecutor. Even where prosecution has already been launched, courts will now be able to halt proceedings once compliance is confirmed.
Importantly, the bill also allows for retroactive relief. If a debtor has already been convicted and is serving a sentence, the execution of that sentence may be postponed or suspended, provided the individual is now repaying or has settled the debt in full. In cases of full repayment, the offense itself is legally erased. However, if a debtor defaults on the payment arrangement, the tax authorities are obliged to update the prosecutor with the new debt status, which could reactivate the legal process.
