“Pandemic” of red loans: the amount of debt exceeded 80 billion euros

An astronomical 80 billion euros was reached by the nominal amount of “red loans” (loans that citizens cannot repay).

As you know, the “outstanding debt” program is run by domestic credit and receivables management companies According to official data, in the last quarter of 2021 alone, about 7.5 billion euros of non-performing “red” loans were “sold” (transferred) by banks to private funds. The total amount of red loans transferred to ΕΔΑΔΠ reached 79.738 billion euros at the end of 2021, from 72.2 billion euros at the end of September 2021.

By category, the majority of these loans, 80 billion or 55%, are consumer and “other loans” and 45% are mortgages.

By industry:

  • 45% private loans,
  • 40% business loans,
  • 15% red loans (issued to the self-employed, farmers, and individual business loans).

“Red” corporate loans

The majority of non-performing loans transferred to management companies in the last quarter of 2021 are corporate red loans (€2.91 billion) and mortgage loans (€2.729 billion).

In total, in the last quarter, 661 million euros of red loans issued to small and medium-sized companies, as well as 726 million euros of consumer loans, ended up in the hands of management companies.

About 32 billion euros are business loans, and half of them, about 16 billion euros, are loans to small and medium-sized enterprises. A slightly smaller amount, 11.675 billion euros, is for self-employed professionals, farmers and self-employed entrepreneurs who cannot pay their bills. Also, 80 million euros relate to financial companies.

“Red loans” and individuals

A total of 36 billion euros is the total amount of private loans now managed by ΕΔΑΔΠ, and the largest category of these loans are housing loans, the total amount of which has now reached 19.77 billion euros.

At the same time, the amount of consumer “non-performing” loans is 16 billion euros, and others – 190 million euros.

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