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Managed loans in Greece edge lower to €79.6bn

Cyprus Mail · 2026-06-22

AI SUMMARY

• What happened: The Bank of Greece reported a decline in the value of managed loans, decreasing by €118 million to €79.59 billion in the first quarter of 2026. • Why it matters: This decline reflects ongoing challenges in Greece's credit servicing sector, particularly in business and mortgage portfolios, despite a modest increase in consumer loans. • What to watch next: Observers should monitor future trends in managed loans and the impact of these changes on Greece's economic recovery and credit market stability.

**Managed Loans in Greece Edge Lower to €79.6 Billion**

The Bank of Greece has announced a slight decline in the total value of loans managed by domestic credit servicing companies during the first quarter of 2026. The nominal value of these loans decreased by €118 million, bringing the total to €79.59 billion, compared to €79.71 billion at the end of the previous quarter.

This data pertains to loans belonging to Greece's domestic private sector, which are overseen by Loan and Credit Claims Management Companies, commonly referred to as servicers. Despite the quarterly decrease, the overall stock of managed loans has remained close to the €80 billion mark.

A significant portion of the managed loan portfolios consists of business loans, which saw a nominal value reduction to €27.8 billion by the end of March 2026. This figure is down from €27.86 billion three months earlier. Within this category, loans extended to non-financial corporations experienced a decline of €40 million, concluding the quarter at €27.79 billion. Notably, €9.64 billion of these loans were allocated to financing small and medium-sized enterprises (SMEs).

Loans to other financial institutions represented a minimal share of the overall portfolios, with their nominal value falling to just €1 million by the end of the first quarter. Additionally, the category that includes loans to self-employed professionals, farmers, and sole proprietorships also saw a decrease. The nominal value of these loans dropped by €35 million, resulting in a total of €10.09 billion in outstanding managed loans for this group.

On the household front, loans extended to households and private non-profit institutions experienced a more modest decline, with a nominal value reduction of €13 million, bringing the total to €41.70 billion. However, the data revealed mixed trends within the household segment. Managed consumer loans increased by €45 million during the quarter, reaching a total of €16.242 billion. Conversely, housing loans under management continued their downward trajectory, with a nominal value decrease of €50 million, ending the quarter at €25.133 billion.

The latest figures indicate that while the overall stock of loans managed by servicers in Greece has remained relatively stable, the reductions observed in business and mortgage portfolios have overshadowed the increase in consumer lending. This suggests a continued adjustment in the country’s non-performing loan market as 2026 progresses, with the overall value of assets under management reflecting a modest decline.

As Greece navigates its financial landscape, these trends in managed loans underscore the ongoing challenges and shifts within the credit servicing sector. The Bank of Greece's findings provide critical insights into the health of the domestic credit market and the broader economic conditions affecting borrowers across various sectors.

Source: Cyprus Mail
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