- Greece’s proposed plan for Swiss franc mortgages aims to provide borrower relief.
- Conversion from francs to euros proposed.
- Banks to handle significant financial costs.
Greece plans to address Swiss franc mortgage issues by offering conversion to euros with discounts, aiming to mitigate financial strain on borrowers as reported on December 16, 2025.
The proposal impacts ~37,000 loans, potentially stabilizing bank balance sheets, while facing criticism for insufficient relief amid escalating repayment costs.
Greece proposes a voluntary settlement to convert Swiss-franc mortgages to euros. The plan addresses repayment disparities from currency volatility affecting about 37,000 loans, totaling approximately €5 billion. According to an anonymous senior official from the Greek Government, “A plan announcement is expected in coming weeks.”
The proposed settlement involves anonymous government officials and banks, intending to offer relief to borrowers facing increased repayment challenges due to currency fluctuations.
This settlement could stabilize banks while providing financial relief for borrowers by offering exchange rate discounts based on income. Immediate impacts include existing borrower challenges and compensating costs for involved banks.
The settlement marks a shift in Greece’s approach but is met with criticism. Critics highlight insufficient safeguards matching other EU countries. Borrowers and experts question the measure’s efficacy in addressing root financial challenges.
For more details, see the European Parliament Document E-10-2025-000367 Overview.
Banking sector risks and potential legal challenges might emerge. The initiative reflects different solutions seen in Romania and Hungary. The lack of legislative support is noticed in EU parliamentary inquiries urging coordinated protective measures.
Borrower representatives express dissatisfaction, citing ongoing legal proceedings. Despina Soniadou, President of the Association of Swiss Franc Borrowers, stated, “These are crumbs. The case remains open. We have three class action lawsuits pending in the courts.” The settlement could impact financial stability but remains uncertain without legislative backing. Historical trends suggest repeated currency-linked mortgage issues, needing comprehensive resolutions.
