Article drafted by Georgios Gkoutsidis, Senior Associate and Magdalini Mavromichali, Senior Associate for Lexology on January, 2025
I. Introduction
Although Switzerland has long been synonymous with neutrality, the Swiss franc and the widespread conclusion of loan agreements denominated in that currency has, in combination with fluctuations in the CHF/EUR exchange rate, generated a complex web of non-performing loans. This development has evolved into a multifaceted legal, social, and political issue.
Following years of controversy, litigation, and legislative inertia, Article 128 of Law 5264/2025 (Government Gazette A’ 239/19.12.2025) introduces a structured mechanism for the conversion of such loan agreements into euros, followed by a binding method for calculating and restructuring the outstanding debt.
ΙΙ. Judicial Background and Case Law Developments
After a period of inconsistent and often contradictory judgments issued by courts of first and second instance across Greece, the Plenary Session of the Supreme Court (Areios Pagos) addressed the issue in Decision No. 4/2019.
By majority, the Court interpreted Article 6(2) of Law 2251/1994 on consumer protection in a manner consistent with EU law, particularly Directive 93/13/EEC on unfair terms in consumer contracts and the relevant jurisprudence of the Court of Justice of the European Union (CJEU). The Court held that where a contractual term merely reflects a provision of national law, i.e. where it is declaratory in nature, such a term cannot be classified as unfair. The rationale lies in the presumption that the legislator has already balanced the interests of both contracting parties.
The issue was also examined at EU level. In its judgment of 20 September 2017 in Case C-186/16, Andriciuc and Others v Banca Românească SA, the CJEU held that a loan clause requiring repayment in the same foreign currency in which the loan was denominated cannot be considered unfair, if it is drafted in clear and intelligible terms and was not individually negotiated.
You can read the article on Lexology here:
A Timely Legislative Initiative: Untangling the “Swiss Franc Knot”
The full article is available here: A timely Legislative Initiative Untangling the “Swiss Franc Knot”
