New Greek Development Law 4887/2022: Extension of financial leasing to private individuals

By Dimitra Gkanatsiou

The new Greek Development Law 4887/2022 was published on 4/2/2022, the purpose of which is to promote the economic development of the country by granting incentives to specific activities and sectors, in order to achieve the digital and technological transformation of businesses, the green transition, the creation of economies of scale, the support of innovative investments and those seeking to introduce new technologies, such as robotics and artificial intelligence, the strengthening of employment with qualified personnel, the support of new entrepreneurship, the strengthen of tourism and the improvement of competitiveness in high value-added sectors.

By article 131 of this law, the institution of financial leasing to private individuals¬†was extended, with a relevant amendment to par. 1 and 2 of Article 1 of Act No. 1665/1986 which governs leasing. This amendment seeks, in the long term, to open up the market for leasing services to all goods, whether capital or consumer goods, regardless of whether the lessee is a business, a self-employed person or a private individual, in order to provide citizens with an additional alternative financial instrument for financing their needs, which may even cover the total market value of the goods concerned, with the consequent wider positive effects on financing and market liquidity and, ultimately, the boost of country’s economy and development.

At the same time, by establishing the provision of leasing services to private individuals, private borrowers with overdue loans will have a further possibility of a ‘permanent solution’ to their problem.