The Bank of Greece has reported a slight decline in the value of loans managed by domestic credit servicing companies and transferred to specialized financial institutions abroad. The total nominal value of these loans, which belong to Greece’s domestic private sector, fell by €118 million during the first quarter of 2026, reaching €79.59 billion at the end of the period, compared with €79.71 billion recorded at the end of the previous quarter. Despite the quarterly reduction, the overall stock of managed loans remained highly stable, hovering close to the €80 billion threshold.

Business loans continued to account for a significant share of the portfolios under management. Their overall nominal value declined to €27.8 billion at the end of the first quarter, down from €27.86 billion three months earlier. Within this category, loans granted to non-financial corporations fell by €40 million, ending the quarter at €27.79 billion. Of this total, €9.64 billion was dedicated to financing small and medium-sized enterprises (SMEs). Meanwhile, loans to other financial institutions represented only a marginal portion of the portfolio, with their nominal value falling to just €1 million by the end of the quarter.

The category covering self-employed professionals, farmers, and sole proprietorships also registered a decline during the period. The nominal value of these loans decreased by €35 million compared to the previous quarter, leaving outstanding managed loans to these borrowers at €10.09 billion at the end of March 2026.

Meanwhile, loans extended to households and private non-profit institutions registered a more moderate decrease. On a quarterly basis, their nominal value fell by €13 million to reach €41.70 billion.

However, the aggregate household figures masked contrasting trends within the segment. Managed consumer loans bucked the downward trend, increasing by €45 million during the quarter to reach a total of €16.242 billion. In contrast, housing loans under management continued to decline, falling by €50 million and ending the first quarter of 2026 at €25.133 billion.

Original Story: Cyprus Mail | Auhor: Kyriacos Nicolaou
Edition: Prime Yield

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