Greek red loan crisis

In 2025 Greek tax arrears rose sharply, adding €3.77 billion to the fiscal burden, while high‑interest private debt (“red loans”) contributed another €2 billion. Around four million taxpayers and 2.5 million social‑security contributors were classified as debtors, with only a few thousand managing to restructure their obligations under earlier installment schemes. The New Democracy government introduced a 72‑installment repayment plan for tax and EFKA debts, but critics argue it will have limited effect and call for broader reforms, such as a 120‑installment plan with a 30 % reduction and stronger borrower protections.

By June 2026, the four largest Greek loan‑servicing firms—Cepal, doValue, Intrum and Qquant—adjusted €356 million of distressed “red” loans for 4,239 borrowers, a modest decline from May but a notable increase from April. Adjustments covered mortgage loans (38 % of the total) and loans to very small enterprises (25 %). The servicers collectively manage €79.6 billion of red loans, with the four firms holding over 92 % of this exposure. About €53.5 million of the June adjustments were covered by the Katselei law.