The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Greek real estate moves into catch-up mode

Greece has lagged behind the rest of the eurozone in its use of techniques to free up value in real estate loans and assets. But banks’ needs for capital should fuel securitization, and new legislation will enable public bodies to make sale and leaseback deals. Dimitris Kontogiannis reports.

No sign of a slowdown

By Dimitris Kontogiannisi

greek-main.gif

THE GREEK REAL estate market has been buoyant for years, supported by low interest rates and double-digit growth in mortgage loans. However, residential mortgage-backed securitization has been slow to pick up. Bankers say this is likely to change as local banks seek to lower their funding costs and diversify their financing sources while loan growth remains healthy and outpaces deposit growth.

On the other hand, real estate sale and leaseback appears to be gaining ground among private sector companies and is expected to catch fire once the state gets involved, following the passage of a critical law in parliament expected in the next couple of months or so.

“The securitization of mortgages and other assets has indeed been slow in Greece but I expect it to gain steam in the years ahead as more banks get involved and loan, especially mortgage, portfolios expand,” says George Georgiou, senior manager at Alpha Bank, the country’s largest private bank.

Georgiou says only a small portion of Greek loan portfolios have been collateralized, opening the way for more asset-backed security issues.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree