Debt Collection Agency Greece: Payment Orders That Work
Debt Collection in Greece: 25 Years of Collecting Where Others Won’t
What Two Decades of Greek Debt Recovery Taught Us
In 25 years of cross-border debt collection, Greece has earned a reputation among our agents as the jurisdiction where patience isn’t optional — it’s structural. The Greek legal system moves at a pace that tests every creditor’s resolve. And yet, our recovery rates in Greece consistently exceed what most creditors expect.
The reason is simple: most creditors give up on Greece too early, based on outdated assumptions about the system. Here’s what we’ve learned from decades of operating there.
How the Greek System Works
Greece operates a civil law system that underwent significant modernisation through Law 4335/2015 (the New Code of Civil Procedure amendments) and subsequent reforms. The system is slower than Northern European equivalents — but faster than it was a decade ago, and with specific mechanisms that work efficiently for commercial creditors.
The Διαταγή Πληρωμής (Payment Order). Greece’s payment order procedure, governed by Articles 623-634 of the Code of Civil Procedure, is the primary tool for commercial debt collection. The creditor files an application with the competent court, supported by written evidence of the debt (contract, invoice, delivery note). The judge issues the payment order ex parte — without notifying the debtor — based on the documentary evidence alone.
The debtor has 15 working days from service to file an opposition (ανακοπή). If no opposition is filed, the payment order becomes enforceable. The entire process, from filing to enforceable title, typically takes 30-60 days. This is Greece’s most efficient collection mechanism and the one we use most frequently for commercial claims.
Service of process matters enormously. Greek procedural law requires strict compliance with service rules. A payment order served incorrectly is vulnerable to challenge. Service must be through a bailiff (δικαστικός επιμελητής) to the debtor’s registered address. If the debtor has changed address without updating their registration, service can be complicated — a local agent who can locate the debtor and coordinate proper service is essential.
The enforcement phase. Once you have an enforceable title (payment order without opposition, or court judgment), enforcement goes through a bailiff. Available enforcement measures include seizure of bank accounts (κατάσχεση εις χείρας τρίτου), seizure of movable property, and auction of real property. Bank account seizure is the most practical tool — the bailiff serves the seizure notice on the debtor’s bank, and funds up to the claim amount are frozen.
Real property enforcement (foreclosure) is available but operationally slow. Post-crisis reforms improved the auction process through electronic auctions (ηλεκτρονικοί πλειστηριασμοί) administered through the e-auction.gr platform, but the process from seizure to auction still takes 8-12 months.
The Post-Crisis Reality
Greece’s financial crisis (2009-2018) fundamentally changed the commercial landscape. Many companies that survived the crisis did so by managing cash flow aggressively — which included strategic late payment to suppliers. A generation of Greek business managers learned to treat payment timing as a liquidity management tool.
This cultural legacy means that late payment in Greece doesn’t necessarily signal insolvency. It may signal a company that learned to survive by controlling outflows. The collection approach must account for this: aggressive escalation against a solvent slow-payer risks the relationship unnecessarily, while passive waiting against a genuinely distressed debtor wastes time.
The distinction requires local intelligence — credit reports through TIRESIAS (the Greek credit bureau, now integrated into the Bank of Greece’s systems), commercial register checks, and on-the-ground assessment by someone who understands Greek business norms.
The Insolvency Framework
Greece’s insolvency regime was overhauled by Law 4738/2020 (the new Insolvency Code), which introduced modern restructuring and liquidation procedures.
Pre-insolvency restructuring. The new code provides for out-of-court restructuring through the OCW (Out-of-Court Workout) platform administered by EGDIX (Special Secretariat for Private Debt Management). Debtors can negotiate restructuring agreements with creditors through a digital platform. If your debtor enters this process, enforcement is stayed — but creditors participate in the restructuring negotiation.
Formal insolvency. The insolvency process through the courts provides for liquidation or rehabilitation. Creditor priority follows the standard hierarchy: secured creditors first, then employee claims, then tax authorities, then unsecured commercial creditors. Recovery rates for unsecured creditors in Greek insolvencies remain low — typically 5-15%.
The practical implication: detect insolvency risk early and act before proceedings begin. Once your debtor enters the insolvency framework, your recovery options narrow dramatically.
What Works in Greece
Speed in the amicable phase. A phone call in Greek from a local agent, followed by a formal demand via registered letter (συστημένη επιστολή), resolves a significant percentage of commercial claims. Greek businesses respond to local pressure from local agents. They do not respond to English-language emails from foreign creditors.
The payment order as primary tool. For documented commercial debts where liability isn’t genuinely disputed, the Διαταγή Πληρωμής procedure is efficient and cost-effective. File costs are proportional to the claim amount, and the ex parte nature means the debtor is served with a fait accompli.
Bank account seizure as enforcement priority. Once you have an enforceable title, target bank accounts first. Movable property seizure is operationally difficult in Greece, and real property enforcement is slow. Bank accounts provide the fastest path to actual recovery.
The Decision Framework
For Greek commercial debts, the calculation is straightforward. Engage a local agent within 60 days of the due date. Allow 30-45 days for the amicable phase. If amicable collection fails, file for a Διαταγή Πληρωμής — timeline to enforceable title is 30-60 days. Execute against bank accounts first.
The total timeline from first engagement to recovery, when the process works efficiently, is 90-150 days. That’s slower than Germany or the Netherlands, but faster than most creditors expect from Greece.
Don’t write off Greek debts based on reputation. The mechanisms exist. They work. They require local execution and realistic expectations about timeline — but the money is recoverable.
