A significant intervention for the protection of primary residences in Greece has been announced by the Minister of National Economy and Finance, Kyriakos Pierrakakis, who presented a new regulation within the extrajudicial mechanism for debt restructuring. The key innovation of this regulation is that debtors will now have the option to separate their primary residence from other assets, choosing to safeguard it through restructuring even if it means liquidating their other properties. This shift aims to address the needs of individuals struggling with debt and housing insecurity.

Under the new framework, the calculation of the restructuring proposal will be based solely on the value of the primary residence, rather than the total assets of the debtor. This change is expected to result in larger debt 'haircuts' and lower monthly payments for those eligible. The determination of the value of the residence will rely on the existing standards within the extrajudicial mechanism, specifically using the higher amount between commercial value and objective value (ENFIA). Such an approach is intended to provide greater financial relief to homeowners while also maintaining accountability in the debt restructuring process.

While the regulation is a step forward in protecting property rights, its implementation will require careful monitoring to ensure that it effectively supports those in need without opening the door to potential abuses. As Greece continues to recover from its economic challenges, this measure represents a critical effort to stabilize housing situations and provide a safety net for homeowners facing financial difficulties.