Finance Minister Makis Keravnos has said the government will submit two bills aimed at strengthening the authority of the Financial Ombudsman and improving protections for primary residences.
Speaking after a Cabinet meeting, Keravnos said the first bill upgrades the Ombudsman’s debt‑verification mechanism, giving the office the power to restructure loans and allowing borrowers to seek help earlier in the process.
If no agreement is reached on restructuring or repayment, borrowers will be able to turn to an insolvency consultant to prepare a personal repayment plan, he said.
The proposal also makes Ombudsman decisions binding up to €20,000 in complaints against financial institutions.
Keravnos said about 75% of cases involving disputes fall between €10,000 and €20,000.
The bills will be sent to the Legal Service on Wednesday for technical review before being forwarded to parliament.