Swiss Franc Loans: Relief Plan Faces Further Delays

Despite earlier government promises to resolve the issue within the first half of 2025, it appears that timeframe will not be enough to settle the complex equation surrounding Swiss franc-denominated loans in Greece.

The Ministry of Finance continues to work on a final formula, with Deputy Prime Minister Kostis Hatzidakis stating on Thursday that a solution will be implemented sometime in 2025 — though no exact timeline has been confirmed.

“As Fair a Solution as Possible”

Hatzidakis clarified that while a resolution could come earlier, he avoided offering specific dates. “It might happen sooner, but I don’t want to be overly precise,” he said, emphasizing that, “it was a firm commitment from the government dating back to my own term as Finance Minister — and we’re standing by our word.”

More than 65,000 borrowers are still awaiting relief. When co-signers and guarantors are factored in, the number of people directly impacted is estimated at around 200,000 individuals and families.

High-Stakes Decisions

A dedicated working group at the Ministry of National Economy and Finance is evaluating multiple scenarios. One of the most complex challenges lies in ensuring that any changes to these loan arrangements do not negatively impact the “Hercules” securitization program (Hellenic Asset Protection Scheme)  — a state-backed scheme supporting Greek banks in offloading bad loans.

Any final plan will also require the green light from the European Central Bank’s Single Supervisory Mechanism (SSM), along with guarantees that the supervisory capital of Greek banks will remain unaffected.

“A Difficult Equation”

Sources within the Finance Ministry admit the situation remains a “difficult equation,” but reaffirm the government’s clear intention: to offer meaningful relief to borrowers. Toward that end, talks have been ongoing in recent months with Greece’s major commercial banks, the Bank of Greece, and the European Central Bank.

Initial indications suggest that the banks are willing to absorb part of the cost, provided that their regulatory capital ratios remain protected. The aim is to build a sustainable framework that alleviates pressure on borrowers without destabilizing the country’s banking system.

The government now faces a dual challenge: delivering tangible support to borrowers while ensuring financial stability across the banking sector — a balancing act that will shape both the outcome and the timeline of the solution.

Source: tovima.com