Greek banks shift €75 billion of red loans to private investors, leaving debt in the economy

Greek banks transferred tens of billions of euros of non‑performing (red) loans to investment funds through sales and securitisations. This rapid off‑loading allowed banks to clean their balance sheets, a move hailed as a major success of the Greek financial system.

However, the underlying private debt remains largely unchanged. By the end of 2025, servicers will manage debt affecting over 2.2 million borrowers and guarantors, amounting to roughly €92 billion. About €82 billion of this has been sold or securitised, while around €10 billion stays on bank balance sheets. The net exposure in the economy is estimated at €75 billion linked to roughly 1.5 million debtors, many of whom still lack sustainable resolutions.

The strategy prioritised swift balance‑sheet improvement rather than eliminating the debt burden, creating a parallel market of problematic private debt that persists despite the banks’ reduced exposure.