Differences between borrowers and banks over the interpretation of a Supreme Court ruling on loans covered by the Katseli law are expected to continue playing out in courtrooms, despite the publication of the decision.
The ruling concerns the calculation of interest on loans that were included in the framework of the law. According to the Supreme Court’s full decision, interest should be calculated on the monthly installment rather than on the total loan amount.
However, the decision has not ended the dispute between borrowers and creditors. One reason is that the ruling applies only to borrowers who have already taken legal action, a development that could prompt additional cases.
The two sides also interpret the court’s reasoning differently. Borrowers argue that the decision provides substantial relief because of the way interest is calculated. Banks and loan servicers, by contrast, maintain that the financial benefit is limited.
