Banks Competing to Boost Housing Loans in Greece

Greek banks are racing to close the gap with the rest of Europe in terms of lending, transitioning into positive credit expansion. This push is happening parallel to government and bank efforts to address the housing issue. Alpha Bank is developing a study to increase residential property offerings, while innovative financial solutions are being crafted in collaboration with Unicredit. Recently, Piraeus Bank announced a partnership with tech provider Qualco for a digital platform focused on housing loans. Utilizing artificial intelligence, this platform will streamline the application process through automated procedures. The bank also launched a new housing loan product called ‘Home 25,’ offering a 25% lower fixed interest rate for the first four years with no application fees. Despite gradual recovery, credit expansion remains negative due to higher repayments on older loans. According to the President of the Hellenic Bank Association, Gikas Hardouvelis, private lending remains negative (-0.3%), contrasting sharply with business loans growing at 17.2%, significantly outpacing the Eurozone average of 2.6%. Additionally, substantial loans have been extended to SMEs and recovery fund projects.