Bank of Greece: Looser loan terms, mortgage demand declines

The Bank of Greece (ΤτΕ) announced that in the second quarter of 2025, the overall terms for granting loans to non-financial corporations (NFCs) became more relaxed. According to the Bank of Greece, this development is due to competitive pressures, which contributed to the reduction of banks' margins, mainly for ordinary loans.

In addition, the total demand for loans from NFCs, and in particular the demand for long-term loans, increased due to financing needs and a lack of alternative sources of funding. However, demand for mortgage loans decreased, while demand for consumer loans increased.

Banks estimate that the criteria for granting loans to NFCs will remain unchanged during the third quarter of 2025.

The proportion of applications for business loans that were rejected remained unchanged compared to the previous quarter.