Greece’s major banking groups are making a comeback to domestic real estate, currently running investment programs exceeding €1.5 billion. The overarching aim is to increase exposure in the real estate sector, after the large divestments during the financial crisis.

This is a strategy that serves multiple purposes, from generating stable revenue and profit streams, to reducing operating costs, as some of the properties acquired are self-occupied to meet housing needs. As a rule, however, these are moves made to enrich the banks’ portfolios with income properties, such as “green” office buildings, shopping malls and logistics centers.

The most recent agreement concerns the decision by the National Bank of Greece to repurchase dozens of properties that currently house its services, from brick-and-mortar branches to central offices. It is a portfolio worth €510.5 million, owned by Prodea Investments, which until today is leased by NBG.

The transaction is expected to be completed during the first half of 2026, ensuring a significant reduction in its operating expenses, as it will no longer pay rents, while adding important realty assets to their portfolios.

Original Story: Ekathimerini | Author: Nikos Roussanoglou
Edition: Prime Yield

A small recovery in housing loans is recorded by the Bank of Greece’s data for October, which is mainly attributed to the strengthening of disbursements through the “My Home II” program.

The central bank’s data reflect this trend as the net flow of financing – i.e. new loans after the repayments of previous debts – moved into positive territory, recording a net credit expansion of 30 million euros since the beginning of the year.

In the business loan sector, the net flow of financing was negative by approximately €1.4 billion, a development attributed to the weakening of new loans after the peak traditionally observed at the end of each quarter – i.e. in September.

Original Story: Ekathimerini
Edition: Prime Yield

Greek banks are turning to securitizations of performing loans in an effort to free up capital and strengthen their ability to provide new loans to the economy.

Through synthetic securitizations, as performing-loan securitizations are called, banks have strengthened their liquidity pipeline with new loans of up to approximately €10 billion over the last five years and for the next two years.

Unlike “classic” securitization, where banks mainly sell nonperforming loans in their attempt to clean up their balance sheets, in synthetic securitizations the loans that are securitized are performing.

This tool is now being used massively by three of Greece’s four systemic banks – Alpha, Eurobank and Piraeus, with National Bank being the only one that has not used this tool due to the excess capital it has – in their attempt to finance the economy with new loans without burdening their capital ratios.

Eurobank has already securitized loans worth over €7 billion through successive such transactions since 2021, reducing its risk-weighted assets (RWAs) by over €2.5 billion.

The amount of RWAs released is gradually reduced based on the maturities of the bonds issued in the context of the securitization.

Accordingly, Piraeus Bank has securitized loans totaling €8.6 billion, releasing assets – after maturities – close to €2.3 billion, while Alpha Bank has securitized loans worth €3.8 billion, releasing approximately €1.8 billion.

Original Story: Ekathimerini
Edition: Prime Yield

The main Greek banks are continuing to make progress in reducing the bad debts on their balance sheets. They closed the third quarter of the year with a cumulative reduction of €1.1 billion compared to September 2024.

According to the European Central Bank’s latest European Risk Dashboard, Greece recorded an non-performing loans (NPL) volume of €5.7 billion in the third quarter of 2025, which is down 16% from the same period last year when the figure was €6.8 billion. This equates to a reduction of €1.1 billion over twelve months. Compared to the previous quarter, there was a decline of 3%, with the NPL stock falling by €200 million compared to the €5.9 billion recorded at the end of June 2025.

The NPL ratio also declined by 0.5 percentage points (p.p.), falling from 3.3% in September 2024 to 2.7% at the end of the third quarter of 2025. Despite the positive year-on-year performance, this figure remained unchanged from the previous quarter and still ranks as the third highest among European Union countries.

Source: European Central Bank
Edition and translation: Prime Yield

Greek banks showed further progress in their effort to reduce nonperforming loans in the first half of 2025, according to the latest data released by the European Central Bank.

However, the percentage of NPLs in Greece remains higher compared to the European average. At the same time, the Greek banks seem to have a fairly strong capital base in the eurozone, while they are lagging behind the competition in lending.

The percentage of bad loans fell to 2.73% in the second quarter of 2025 from 2.90% in the first quarter of the year. Moreover, Greek banks are more efficient than the European average based on return on equity.

The index of Greek banks stood at 13.2% at the end of the second quarter of 2025 compared to 10.11% in European banks.

At the same time, the Greek systemic banks (National, Piraeus, Eurobank and Alpha) which are on the SSM radar of the ECB’s supervisory arm appear to be among the most adequately capitalized in the eurozone as the relative capital adequacy ratio (CET1) increased to 16.09% from 15.88% at the end of the first quarter of 2025.

For European banks the same index stood at 16.12% from 16%. In addition, Greek banks appear to have granted far fewer loans compared to European banks. The loan-to-deposit ratio of Greek banks is only at 62.37% against 102.16% in the eurozone

Original Story: Ekathimerini
Edition: Prime Yield

The quality of loan portfolios at Greece’s credit institutions continued to improve during the first half of the year, with the stock of nonperforming loans (NPL) at the country’s banks falling by 2.4% from December 2024.

At the end of June 2025, the NPL stock stood at EUR 5.8 billion on a solo basis, down by 2.4% from December 2024, primarily due to loan recoveries, sales, and write-offs.

The Greek banking NPL ratio was 3.6% at the end of the first half of the year, which is 0.2 percentage points lower than the 3.8% recorded at the end of 2024, as credit growth was accompanied by a decline in NPLs. This is the lowest NPL ratio since Greece joined the euro area and is largely in line with the average for significant institutions in the Banking Union (June 2025: 2.2%).

Additionally, the NPL ratio of less significant institutions dropped to 5.9% in June 2025.

Original Story: NPL Confidential | Author: Phil Karametos
Edition: Prime Yield

Piraeus Bank has completes the securitization and transfer of a portfolio of non-performing exposures consisting of corporate loans, including bond loans and other receivables, with a total gross book value of approximately €300 million. Global law firm Hogan Lovells has advised the transaction, as international counsel.

The portfolio was part of the Solar portfolio, which had been classified as held for sale as of 30 June 2022 and was originally established as part of a joint initiative by the four systemic banks to manage non-performing corporate claims.

The notes issued in the context of the securitisation were acquired by an affiliate of the investment manager, Waterwheel Capital Management, LP. The servicing of the portfolio was assigned to Cepal Hellas AEDADP, a credit servicer licensed by the Bank of Greece.

This transaction forms part of Piraeus Bank’s ongoing strategic plan for the active management of non-performing exposures, further supporting its long-term growth objectives.

Original Story: Legal Desire |Author: PR Hogan Lovells
Edition: Prime Yield

National Bank of Greece announced that it has entered into a definitive agreement with funds managed by Bain Capital, for the disposal of a portfolio of secured non-performing exposures (“NPE”) of consumer loans, mortgage loans, small business loans (“SBL”) & small & medium enterprises loans (“SME”) with total principal amount of c.€0.1 billion.

The transaction is being implemented in the context of the Bank’s NPE management strategy.

The consideration of the transaction amounts to 45% of the total principal amount of the Etalia A Portfolio. The transaction is expected to be capital accretive.

The transaction is expected to be completed by Q1 26. Following the completion of the transaction, Bain Capital is expected to assign the servicing of the portfolio to a loan and credit management company regulated by the Bank of Greece under the applicable legal framework.

Morgan Stanley & Co. International plc acted as financial advisor while Karatzas & Partners Law Firm served as external legal counsel to NBG.

Original Story: National Bank of Greece
Edition: Prime Yield

National Bank of Greece had just announced that it has entered into a definitive agreement with funds managerd by EOS Group, for the disposal of a portfolio of unsecured non-performing exposures (NPE), named Project Etalia B, including consumer loans, small business loans (SBL), small & médium enterprises loans (SME) and large corportate with total principal amount of c.€0.1 billion.

The transaction is being implemented in the context of the Bank’s NPE management strategy. 

The consideration of the transaction amounts to more than 25% of the total principal amount of the Etalia B Portfolio. The transaction is expected to be capital accretive. 

The transaction is expected to be completed by Q1 26. Following the completion of the transaction, EOS Matrix Greece will undertake the servicing of the Etalia B Portfolio.

Morgan Stanley & Co. International plc acted as financial advisor while Karatzas & Partners Law Firm served as external legal counsel to NBG.

Original story: NBG
Edition. Prime Yield

International rating agency Moody’s describes Greece’s credit conditions as a thorn in the side of Greece’s credit rating, as while they have improved in recent years, they remain negative, with significant challenges on the lending front affecting the prospects of the economy and banks.

Despite the fact that banks have offloaded these nonperforming exposure (NPEs), they continue to remain in the system, while new loans are being issued that have not been tested in the economic cycle, as it points out.

Moody’s notes that credit conditions in Greece, which it rates as negative, have improved in the last three to four years, with a significant reduction in banks’ NPEs, which, however, remain higher than those of European bonds.

As it says, banks’ NPEs have decreased to 6 billion euros, or 3.8% of total loans (according to March 2025 data), from €47.2 billion (or 30% of loans) in December 2020.

Nevertheless, Moody’s points out that approximately €78.3 billion of nonperforming loans (NPL), which concern both households and businesses, remain in the hands of servicers and therefore affect the overall assessment of credit conditions in Greece.

The significant reduction in total credits reflects the removal of non-core assets from banks’ balance sheets, the securitization/sale of NPE portfolios and write-offs, Moody’s says.

Greek banks, however, have started to grant new loans, aiming to capitalize on the economic recovery and the positive effects of the Recovery Fund. According to the Bank of Greece, the net credit flow between June 2024 and June 2025 was significant, around €12.6 billion, it said.

“However, this new lending to the real economy, which mainly includes corporate loans as households continue to deleverage, has not yet been tested in a full economic cycle. This factor leads to the negative adjustment to our assessment of credit conditions in Greece,” Moody’s notes.

The agency, however, estimates that any potential risks to vulnerable borrowers are expected to be offset by the resilience of the business sector and new loans related to Recovery Fund projects, which will help banks’ performing loan portfolios continue to expand.

Original Story: Ekathimerini | Author: Eleftheria Kourtali
Edition: Prime Yield

Servicer doValue is paving the way for banks to repay part of the guarantees given by the Greek government in the context of the Hercules securitizations through the sale of two loan portfolios.

These are loans from Eurobank’s Cairo securitizations that were securitized through Hercules – that is, they were sold to doValue and have now been streamlined – i.e. they are being serviced.

Their transfer by the investors who had purchased these loans will allow the repayment of the guarantee given by the government through the issuance of senior notes, thus reducing the burden on the public debt. The senior notes are held by the banks on their balance sheets, which, in turn, once the transaction is implemented, will repay the government the guarantee corresponding to these loans.

The portfolios for sale are the Alexandria portfolio, worth 1.5 billion euros, which includes regulated loans of 2,700 large and medium-sized enterprises, and the Giza portfolio, worth approximately €200 million, which includes mortgage loans that are now considered serviced.

The two portfolios will be transferred to investors, to whom the relevant information has already been sent in order for them to express interest and then submit binding offers. The process is being run on behalf of doValue by doAdvice (a subsidiary of the Italian doValue Group) and the goal is to close the transactions by the end of the year.

The transfer of these loans to a third-party investor in turn paves the way for their return to the banks, which is the ultimate goal.

Revealing the importance that banks attach to the return of these loans is an analysis by the National Bank of Greece, which raises to €40 billion the loans that currently belong to funds and could gradually return to the market in the coming years, either as “cured” or as a mechanism for new financing, strengthening credit expansion.

According to National, cleaning up the balance sheets of Greek banks can offer a significant opportunity for new credit, as the loans managed by the servicers or the guarantees that these loans carry, namely real estate, will gradually begin to return to the market and to a healthy economy.

Original Story: Ekathimerini | Author: Evgenia Tzortzi
Edition: Prime Yield

More than 13,800 vacant houses belong to banks and servicers from foreclosures.

The need to channel a large number of properties into the market is greater than ever, as limited supply is driving rental and purchase prices sky-high. In this context, banks, real estate management companies and the government are seeking to put more than 13,800 homes on the market to provide some “relief” to the housing crisis facing Greece, particularly in major urban centers.

Specifically, the sharp imbalance between supply and demand in the real estate market has led to rental prices increasing by 10.9% in just one year, while the overall housing sector rose by 6%, according to ELSTAT data.

This problem is further exacerbated by nearly 800,000 vacant properties, which remain unused. Of these, more than 25,000 belong to banks and real estate management companies, coming from foreclosures, and essentially constitute a “burden” for them as long as they remain idle.

Indeed, discussions have already taken place regarding the possibility of deferring the costs of legalizing these properties so that payment is not a prerequisite for their use. It is estimated that out of the 25,000 properties of all categories, around 13,800 are homes and apartments, with a total estimated market value exceeding €6 billion.

Bank-owned properties

All systemic banks, as well as Attica Bank, maintain at least one real estate platform, either managing the properties directly or operating as digital real estate agents.

The National Bank has two real estate platforms with different functions. The first is RealEstateOnline.gr, which provides access to properties owned by the bank, such as residences, plots, shops, offices, etc. It also provides access to the electronic auction platform for properties and movable assets, where customers can participate in auctions and request guarantees via internet banking.

The second platform is Uniko, the new digital real estate sales platform, operating as the first digital real estate agent in Greece with the support of the National Bank (49% stake). Its services range from finding a home, legal due diligence, certification and appraisal, to financing through the National Bank and digital contract completion.

Piraeus Bank, through Piraeus Real Estate, manages pbre.gr, where interested parties can find high-value properties, both residential and commercial.

Alpha Real Estate Services, part of Alpha Bank, manages and exploits properties owned by the bank and third parties, providing comprehensive services such as valuations, sales, leases, property management and project coordination. In addition, it has a presence in Southeastern Europe through subsidiaries.

At the same time, Alpha Property Management and Investments S.A., a group company founded in 2018, undertakes the valuation, management, utilization and sale of properties acquired by the bank mainly through non-performing exposures (REOs).

Eurobank’s findyourproperty.gr platform offers easy property search and support from experienced partners, as well as financing proposals to complete the purchase. It lists residential, commercial and investment properties such as homes, plots, shops, offices, warehouses, buildings and hotels.

The bank has also invested in the digital platform Prosperty, which creates integrated digital real estate ecosystems aimed at increasing transparency, speed and efficiency in property promotion and sales.

Attica Bank clients who are beneficiaries of the “My Home 2” program have access to properties ready for transfer from the portfolio of Resolute Cepal, through a recent collaboration of the two entities.

In addition, they have access to the My Home platform, developed for its clients by Ask Wire, offering customized searches enabling interested parties to locate available properties that meet the program’s requirements.

Platforms from servicers

doValue, Intrum, Cepal and QQuant are the four largest servicers in Greece, managing around 90% of non-performing loans, with a total value of approximately €70 billion.

Altamira Properties is a real estate platform from doValue, offering a comprehensive digital experience of searching for and acquiring properties throughout Greece. The platform targets both investors and individuals, providing easy, user-friendly and interactive property presentation, updates on new opportunities, and access to full property management services.

Intrum operates Intrum REO, which facilitates the management and sale of properties through an innovative business model, leveraging cutting-edge technology and an extensive partner network.

Cepal Group partnered with international company Resolute Asset Management Group to establish Resolute Cepal Greece Group (RCG), which provides comprehensive property management services, consultancy, technical and legal due diligence, as well as strategic planning for their utilization.

Original Story: Business Daily Greece | Author: Ελευθερία Τσιπιτώρη Edition: Prime Yield

Greece’s four largest banks (Alpha, Eurobank, National and Piraeus), registered a net credit expansion of €4.7 billion in the first half of 2025 compared to the same period in 2024. 

If one includes all group activities abroad, credit expansion reached €5.5 billion. 

The expansion is due to the financing of projects partly funded by the European Union’s Recovery and Resilience Fund; also, banks emphasized credit to small and medium-sized enterprises rather than households. 

The trend is expected to continue in the second half of the year. 

The four banks’ total performing loan portfolio at the end of June was €132 billion from €127.3 billion at the end of 2024, despite a hit in the valuation of credit to shipping companies, as it is done in dollars and the dollar has lost ground compared to the euro. 

At group level, Eurobank owns the largest performing credit portfolio (€48 billion, up from €46.3 billion at the end of 2029), of which €30.3 billion is in loans to Greek corporations and individuals; Piraeus Bank’s portfolio (€35.9 billion) focuses on domestic firms. So does Alpha’s, where loans in Greece accounted for €32.6 billion of the €34.4 billion in its overall portfolio.

Original Story: Ekathimerini | Author: Newsroom
Edition: Prime Yield

Credit ratings agency Moody’s said, on August 13th, that half-year profits announced by Alpha, National, Piraeus Bank and Eurobank are on solid ground, based on credit expansion and nonperforming loans (2.9% in June) inching closer to the European average (2.2%).

Original Story: Ekathimerini | Author: Newsroom
Edition: Prime Yield

Banks will now offer a house complete with a mortgage for it, as they proceed with the utilization of the real estate assets in their possession, thereby turning into digital estate agents of sorts.

Through the online platforms major lenders have developed, they will not only offer candidate buyers houses to buy but also a funding option for it.

Banks are also aiming at faster and simpler procedures, from applications to the disbursement of mortgages, through the online platforms developed and the cooperation with the servicers as well as specialized enterprises that undertake the processing of housing loans.

Up first in promoting realty and support was National Bank, through its Uniko online platform, in cooperation with Qquant of the Qualco group and its own platform realestateonline.gr for the assets it controls. Piraeus promotes its assets via piraeusrealty.gr along with alternative platforms such as realestate.intrum.gr and ReInvest.gr, with cooperation with Qualco on a new platform for mortgage promotion.

Eurobank’s realty platform Prosperty is cooperating with FinTHESIS for the agreement and approval of mortgages, and Alpha offers properties for sale with financing via its propertynow.gr platform.

Original Story: Ekathimnerini | Author: Evgenia Tzortzi
Edition: Prime Yield

In total, credit institutions are expected to contribute €100 million to the entity.

Greek banks are set to play a central role in creating the new entity, which is designed to manage repossessed homes while preventing evictions. This marks a significant shift in Greece’s housing policy landscape. According to recent disclosures in Parliament by the Deputy Finance Minister, the banks will participate in the scheme through either equity contributions or loans.

In total, credit institutions are expected to contribute 100 million euros to the entity. This funding will come either as direct investment, making the banks shareholders with profit expectations, or as loans, depending on negotiations with the entity. Essentially, the banks will gain a stake in properties that were once mortgage collateral, but this time they will not bear any credit risk.

How the 100 million euros is structured — whether in equity, loans, or a mix — will depend on the investment’s internal rate of return (IRR). If no third-party investors join, officials say that the banks’ funding alone could cover the purchase of up to 2,000 homes.

Not Just an Investment Scheme — A New Housing Model

This structure is more than just a financial instrument — it could represent a new model for housing policy in Greece. In this model, a homeowner at risk of foreclosure loses their home to the bank. The property is then sold to a new entity, in which the bank may be a shareholder, or the sole shareholder if no outside investors come forward. The former homeowner remains in the property, but now as a tenant, paying indirect rent back to their original lender through the new intermediary entity.

How the Leaseback Scheme Works

The Property Acquisition and Leaseback Entity, which was selected through an international tender process, will purchase homes from owners who are in significant debt and lease them back to them for 12 years in order to prevent evictions. If they recover financially, tenants can repurchase their homes, while the state will support them with monthly rent subsidies through the social welfare agency OPEKA.

Original Story: Tovima | Author: Newsroom
Edition and translation: Prime Yield

Greece’s banks reduced loans to businesses but increased overall disbursements in 2024 compared to 2023. Large businesses received the largest amounts, and also borrowed at the lowest interest rates compared to the rest.

According to data from the AnaCredit statistical database, the value of new business credit agreements amounted to 28 billion euros in 2024, slightly reduced compared to 2023.

However, the debts of non-financial corporations (NFCs) to domestic credit institutions corresponding to these agreements – that is, the value of loans not only agreed upon but also disbursed during this year – increased significantly by 61%, reaching €20.6 billion, up from €12.8 billion the previous year.

Original Story: Ekathimerini
Edition: Prime Yield|
Image by Raten-Kauf from Pixabay

Greece’s housing market is gridlocked by bureaucracy, say both banks and servicers.

Eurobank CEO points the finger back at the state, arguing that it is government-imposed conditions, particularly those tied to property legalization and digital registration, that are delaying housing sales.

Greece’s banks, loan servicers, and investment funds currently hold an estimated 25,000 properties, according to official data. Yet most of these remain unsold, prompting the government to accuse the asset managers of deliberately holding back supply in a bid to extract higher profits.

The result, officials argue, is a limited housing stock that fails to ease soaring demand—especially from abroad—driving prices even higher and making homeownership unattainable for younger households.
However, both banks and servicers strongly reject this claim.

Fokion Karavias, CEO of Eurobank, firmly counters the government’s position, stating that financial institutions have every incentive to sell these assets as quickly as possible. He points the finger back at the state, arguing that it is government-imposed conditions, particularly those tied to property legalization and digital registration, that are delaying sales.

Under current rules, properties must be fully legalized in terms of planning permissions, zoning, and other regulatory requirements before they can be transferred. Banks and servicers can acquire them as-is but can’t resell until all issues are resolved.

This regulatory bottleneck, Karavias insists, is the true cause of the limited supply on the market. He notes that legalising properties and securing digital IDs is a long and complex process, often dragging on for months or even years.

Eurobank and others have suggested allowing property sales without prior digital registration, transferring the responsibility to buyers—but the Finance Ministry has rejected the proposal. Karavias criticises the rigid stance, especially given that only a small fraction of Athens’ housing stock currently has a digital ID.

Theodore Kalantonis, head of doValue Greece, also proposed shifting responsibility for legalizing properties to buyers for a year to help ease supply pressures. He warns that lengthy red tape delays sales and that mortgage approvals now take six months—far longer than the 45 days needed before the crisis—often stalling deals.

Kalantonis warns that mounting delays risk undermining Greece’s edge in real estate, once known for fast deals. He urges the government to cut red tape, starting by letting buyers handle property legalisation and digital IDs, to ease the country’s housing crisis.

Original Story: Tovima
Edition: Prime Yield
Image by Reissaamme from Pixabay

The government would like to see the thousands of closed properties managed by servicers reopen and begin to return to the market, considering that they will constitute an important source of supply reinforcement.

The issue was discussed last May 29th  among others, by Minister of National Economy and Finance Kyriakos Pierrakakis and Bank of Greece Governor Yannis Stournaras, in a meeting at the central bank, while in the afternoon a meeting was held on the same issue at the Ministry of National Economy, under Pierrakakis, with the participation of the servicers and Bank of Greece Deputy Governor Christina Papaconstantinou.

The goal is to regulate the loans corresponding to these properties, so that they can be put back on the market not be auctioned off. A systemic solution is being sought in this direction, a source has told Kathimerini. However, the same source acknowledged that the solution will not be easy, given that it is a problem that has accumulated over the years.

In any case, the government has put housing at the center of its policy, as this has emerged as a top problem. To this end, it is attempting to bring as many as possible of the approximately 800,000 closed properties onto the market, according to the calculations of representatives of the real estate market.

For individuals who keep their properties closed, the government will move with a carrot-and-stick logic, providing incentives for owners to open their closed properties and establishing disincentives for those who insist on keeping them closed.

At their meeting, Pierrakakis and Stournaras agreed that the Savings and Investment Union, which is promoted by the European Commission, is positive and they support it.

Pierrakakis added that the barriers between European economies must be removed. “As Mario Draghi has mentioned,” the minister explained, “the barriers that exist in the service sector are equivalent to corresponding tariffs of around 110%.”

Original Story: Ekathimerini | Author: Eirini Chrysolora
Edition: Prime Yield
Image by Thomas G. from Pixabay