Greek Borrowers Face Deadline to Convert Swiss-Franc Loans

Interest in the program has accelerated as the deadline approaches, according to people familiar with the process.

Officials at Greece’s Ministry of National Economy and Finance say the deadline represents the final opportunity for eligible borrowers to convert their Swiss-franc debt into euros on preferential terms, addressing a long-running problem created by the sharp appreciation of the Swiss currency.

Interest in the program has accelerated as the deadline approaches, according to people familiar with the process. Still, expressions of interest don’t necessarily mean borrowers have completed their applications or committed to converting their loans.

Around 65% of eligible borrowers have taken steps toward joining the program, according to the latest available data. Banking officials estimate that figure could reach about 70% by the Sept. 30 deadline. Some borrowers are still assessing the financial terms before deciding whether to convert their outstanding debt.

Greek banks continue to hold 20,625 Swiss-franc loans with outstanding balances of roughly 2.5 billion Swiss francs, while another 17,442 loans totaling around 3 billion francs are managed by loan-servicing companies. In all, an estimated 38,067 loans could potentially qualify for the conversion framework.

The program is designed to reduce the burden created by exchange-rate movements that left many borrowers owing substantially more in euro terms than they had anticipated when taking out their loans.

At the heart of the plan is the conversion of Swiss-franc debt into euros at a preferential exchange rate. Borrowers are divided into four categories, corresponding to exchange-rate improvements of 15%, 20%, 30% or 50%.

The more generous tiers are subject to income and asset tests. A 15% improvement is available more broadly, without the same financial-eligibility restrictions.

About one-third of borrowers who have started the process are estimated to meet the income and asset requirements for the 20% to 50% tiers. The remainder can use the across-the-board 15% benefit.

The application process also differs depending on the level of relief sought. Borrowers seeking an exchange-rate improvement of between 20% and 50% must apply through the designated government platform. Those opting for the 15% adjustment deal directly with the bank or loan servicer managing their debt.

The euro is currently trading at roughly 0.95 Swiss franc, slightly more favorably for borrowers than when the legislation establishing the program was approved, when the rate was around 0.93 franc to the euro.

The program’s discount is applied to the exchange rate used to convert the loan rather than directly to the outstanding principal. As a result, the ultimate financial benefit varies according to the terms and balance of each loan.

Performing Swiss-franc loans, as well as loans that have previously been restructured and remain current, are eligible for the program.

Loans that were more than 90 days past due as of Feb. 19, 2026, must first be restructured. Borrowers can do that either through a direct agreement with their creditor or through Greece’s out-of-court debt-restructuring mechanism. Once brought under a qualifying restructuring arrangement, the loans can become eligible for conversion.

After conversion into euros, the loans carry fixed interest rates ranging from 2.30% to 2.90% for the remainder of their repayment period. Under certain conditions, borrowers can also extend the maturity of their loans by as much as five years, a provision intended to limit increases in monthly payments.