The government of Greece is preparing new legislation aimed at strengthening consumer protection in the retail banking sector, including a cap on how much borrowers must repay on certain loans.

Prime Minister Kyriakos Mitsotakis outlined the proposal as part of a broader effort to curb what he described as unfair lending practices and unclear contract terms. The measures are expected to focus mainly on unsecured consumer loans and credit card debt of up to €100,000.

Under the plan, the total repayment amount — including interest and fees — would be limited to between 30 percent and 50 percent above the original loan amount. Officials say this approach aligns with practices seen in other European countries and is intended to create a more transparent and balanced framework for borrowers.

The proposal also includes a 14-day cooling-off period after signing a loan agreement, giving consumers the option to withdraw without penalty. Authorities believe this step will strengthen borrower rights and improve confidence in financial products.

The initiative comes as Greece’s consumer credit market continues a gradual recovery following years of contraction during the country’s debt crisis. Demand for loans has picked up since 2022, but borrowing costs remain relatively high compared with other types of credit.

Interest rates on consumer loans often exceed 10 percent, while rates on revolving credit products such as credit cards can rise above 14 percent. Economists warn that the combination of increased borrowing and elevated interest rates could heighten the risk of households taking on unsustainable levels of debt.

The government’s move forms part of a wider push to address concerns about banking practices. In recent years, customers have raised complaints about complex terms and conditions, as well as the cost of basic services such as transfers and account maintenance.

Authorities have also urged banks to offer better returns to savers during the period of rising interest rates, arguing that financial institutions have been slow to pass on benefits to depositors.

Despite these concerns, Greece’s banking sector has shown signs of recovery, with institutions returning to profitability after a period of restructuring and efforts to reduce non-performing loans.

Officials say the proposed measures are designed to strike a balance between supporting a stable banking system and ensuring fair treatment for consumers. If approved, the legislation could mark a significant step in reshaping the relationship between lenders and borrowers in Greece’s evolving financial landscape.

European stock markets opened higher on Tuesday but later traded in mixed territory as investors tracked developments in the Middle East and their potential impact on global energy supplies.

Early gains across major indices faded as uncertainty surrounding the situation between the United States and Iran weighed on sentiment. Traders remained focused on the situation in the Strait of Hormuz, a vital corridor for global oil and gas shipments that has been at the center of recent tensions.

Oil prices pulled back in early trading after a sharp rise in the previous session, though they stayed well above recent averages. Brent crude was down 1.38 percent at $112.86 a barrel, while West Texas Intermediate crude fell 2.27 percent to about $104 per barrel. Prices had surged close to 6 percent on Monday, briefly pushing Brent above $114, as concerns grew over possible supply disruptions.

Equity markets in Europe showed mixed performance. Germany’s DAX rose 0.8 percent, while France’s CAC 40 gave up early gains to slip into negative territory. The UK’s FTSE 100 hovered around flat levels, and Italy’s FTSE MIB posted a stronger gain of 1.2 percent.

Trading volumes were relatively light, with several major Asian markets closed for holidays. In the region, Hong Kong’s Hang Seng Index declined 1.1 percent, while Australia’s S&P/ASX 200 dropped 0.5 percent. Taiwan’s TAIEX also edged lower.

The fragile ceasefire between Washington and Tehran faced renewed strain on Monday. US officials said military forces had sunk several Iranian boats that were approaching civilian vessels, while two US-flagged ships managed to pass through the Strait of Hormuz under protection. Despite these movements, much of the key waterway remains effectively restricted, raising concerns about the flow of energy supplies.

The standoff intensified after Donald Trump introduced what has been described as “Project Freedom,” a plan aimed at escorting stranded commercial vessels through the contested route. The United States has also imposed a maritime blockade on Iranian ports, adding to the pressure on Tehran.

Before the escalation began earlier this year, oil prices had been trading near $70 a barrel. The recent surge highlights the sensitivity of energy markets to geopolitical developments in the Gulf region.

Investors continue to monitor the situation closely, with further shifts in markets likely as events unfold and as clarity emerges on the status of shipping through one of the world’s most critical energy corridors.

The United Arab Emirates has signed a major trade agreement with South Korea, marking a significant step in the Gulf region’s growing economic alignment with Asian markets. The deal was announced just one day after the UAE confirmed its exit from OPEC, highlighting a broader shift in its trade and investment strategy.

The agreement, known as a Comprehensive Economic Partnership Agreement (CEPA), aims to strengthen economic ties between United Arab Emirates and South Korea by reducing trade barriers and boosting cross-border investment. Under the terms of the pact, tariffs will be eliminated or reduced on more than 91 percent of goods traded between the two countries.

Officials say the deal is expected to increase trade flows and create new opportunities across sectors such as technology, manufacturing and logistics. Non-oil trade between the two countries reached $6.9 billion in 2025, and both sides anticipate further growth following the agreement’s implementation.

Thani bin Ahmed Al Zeyoudi said the CEPA would open new avenues for exporters and deepen cooperation in key industries. He added that the agreement reflects the UAE’s commitment to expanding its global trade network and strengthening partnerships beyond traditional energy markets.

The deal is also notable as South Korea’s first trade agreement with a country in the Gulf Cooperation Council and the wider Middle East and North Africa region. Analysts say it comes at a time when global supply chains are being reshaped by geopolitical tensions and shifting economic priorities.

At the same time, Qatar is also moving to enhance its economic relationship with Seoul. In recent days, Ahmed bin Mohammed Al Sayed led a delegation to South Korea for discussions focused on trade and investment.

Talks have covered a range of sectors, including artificial intelligence, semiconductors, biotechnology and advanced manufacturing, reflecting a shared interest in innovation-driven growth. The engagement signals a broader push by South Korea to strengthen ties with Gulf economies, while Gulf states seek to diversify their economic partnerships.

The UAE’s agreement with South Korea is part of a wider strategy to build new trade corridors with Asia, reducing reliance on traditional Western markets and energy exports. The move aligns with long-term economic plans aimed at diversification and sustainable growth.

As global trade patterns continue to evolve, Gulf countries are positioning themselves as key players in connecting markets across regions. The latest developments with South Korea underline the increasing importance of Asia in shaping the future direction of Gulf economies.