DEBT MANAGEMENT
Swiss franc loans: where borrowers stand today
· 5 min read · Georgios F. Dionysiou
Swiss franc loans remain among the most complex debt categories in Greece. The exchange rate, the interest calculation method, and — crucially — the wording of the original contract terms determine what the borrower can realistically claim.
What determines the case
The central legal issue is the transparency of the foreign exchange clause: whether the borrower was informed in a clear and understandable way about the currency risk they were assuming. The issue has repeatedly occupied Greek courts and the EU Court of Justice, based on Directive 93/13/EEC and Law 2251/1994.
Case law is not uniform and assesses case by case, based on the specific contract text and what is proven about pre-contractual information. Therefore, no case should be treated with a 'standardized' outcome prediction.
The realistic options
- Bilateral negotiation with the bank or servicer, with a documented proposal.
- Conversion of the balance to euros, with careful calculation of conversion costs.
- Inclusion in the out-of-court mechanism, when conditions are met.
- Mediation, especially when both sides show willingness to agree.
- Legal action, when contract audit reveals strong arguments.
The first step
Before any decision, a full financial and contractual audit is conducted: original contract and additional acts, detailed account movements, calculation of exchange rate and interest impact. From this, what's at stake, what each option costs, and the timeline emerge.
Sources & legislation
Disclaimer — this article is for informational purposes only and does not constitute, nor can it replace, personalized legal, financial or tax advice. The legislation, ministerial decisions, amounts and criteria mentioned may have been amended or repealed after the date of publication; all information must be verified against current provisions (Official Gazette, gov.gr) at the time you make a decision. The outcome of each case depends on its specific factual and legal circumstances, the fund or authority involved, and the applicable provisions at the time. Before deciding or acting on any point in this text, seek a personal assessment from a qualified professional who will examine your own case.