P&P is please to share our latest article in IFLR, titled Unwarranted Legislative Haste: Greece Rushes Through Laws Affecting Corporate Loans and Credits.
In this insightful piece, Partners Nikolas Katsaros and Maria Karabella, critically examine two new laws recently passed in Greece. Following these recent legislative initiatives by the Greek government –both introduced, discussed, and voted on at haste over the summer– certain changes have been introduced that affect the loans and credits landscape in Greece.
Below are the key points outlined in the article:
- New Laws Impacting Loans and Credits: Two recent legislative changes in Greece, Law 5123/2024 and Law 5135/2024, introduce significant modifications to the regulatory framework for pledges and the replacement of the Greek stamp duty with a new digital transaction levy (DTL).
- Pledge Modernisation Efforts: Law 5123/2024 aims to modernize the legal framework for pledges of claims, shares and non-possessory pledges of chattels, but has been criticized for being fragmented, increasing bureaucracy, and missing opportunities to streamline and simplify the processes.
- Digital Transaction Levy (DTL): Law 5135/2024 replaces the outdated stamp duty system but introduces a similar tax on transactions, which many view as merely a rebranded continuation of the old system, with limited improvements.
- Registration of Pledges: A new requirement for mandatory registration of most pledges in a central electronic register, managed by the Land Cadastre, adds complexity and potential delays in financing transactions.
- Impact on Corporate Loans and Bond Loans: While bank loans and corporate bond loans are exempt from the DTL, concerns persist about the DTL’s impact on guarantees in relation to other non-Greek loans, and the overall competitiveness of Greece’s corporate financing environment.
Follow the link to read the full article on IFLR for a deeper dive into how these changes might affect the Greek loan and credit landscape.
https://www.iflr.com/article/2ducn2p8z264cqfa3in0g/sponsored/unwarranted-legislative-haste-greece-rushes-through-laws-affecting-corporate-loans-and-credit
You can download the PDF here
