Greek Agreement on Mortgage NPLs

Date Published 11/19/2015
Author Marja Hoek-Smit
Theme Housing Finance Policy
Country Greece

November 19, 2015

An agreement was reached on how to deal with the growing mortgage NPLs in the banking system as part of a comprehensive agreement on fiscal and banking reforms between Greece, the IMF and the European Union. 

Non-Performing-Loans in Greek banks have reached more than 100 billion Euro. Roughly one quarter of lower income households (composed of 4 persons), who have defaulted on their mortgages and earn 23,659 Euro or less per year, will be protected from eviction. In addition, households with a non-performing mortgage on a home with a maximum value of 230,000 Euro and earning 35,086 for a four-person household, will have a similar protection. The average mortgage amount in Greece is between 90,000 and 100,000 Euro.

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