Real Estate Acquisition and Leaseback Agency nears launch

According to sources familiar with the process, following the completion of the tender procedure, the competent committee of the Ministry of National Economy and Finance will evaluate the sole binding offer submitted for the establishment and operation of the Real Estate Acquisition and Leaseback Agency. The successful bidder will then be formally designated, after which the relevant agreement will be submitted to Parliament for ratification.

Sources within the Ministry indicate that the objective is for the Agency—expected to serve as a social safety net for financially vulnerable borrowers—to become operational by the autumn.

How the Scheme Will Operate

The Real Estate Acquisition and Leaseback Agency was originally envisaged under Greece’s Debt Settlement and Second Chance Law of 2020. However, its implementation was delayed due to the complexity of the project and the challenges associated with securing an investor capable of undertaking its operation.

Under the framework, the Agency will acquire the primary residences of vulnerable borrowers through foreclosure auctions and subsequently lease the properties back to the former owners, allowing them to remain in their homes.

Beneficiaries will pay a monthly rent determined by the property’s value, prevailing floating-rate mortgage lending rates, and a margin to be established by the Agency’s investor. In parallel, the State will subsidise part of the rent, with support ranging from €70 to €210 per month depending on household composition and financial circumstances.

Right to Repurchase

One of the scheme’s most significant features is the right of repurchase. Upon completion of the 12-year lease period, eligible vulnerable borrowers will have the option to reacquire ownership of their property by paying a purchase price determined in accordance with the terms and conditions set out in the lease agreement.

This provision distinguishes the Agency from a conventional foreclosure process, as it preserves the possibility for borrowers to regain ownership of their home once their financial circumstances improve.

A Complementary Tool to the Out-of-Court Debt Settlement Mechanism

According to Ministry officials, the Agency is not intended to replace debt restructuring arrangements or the out-of-court debt settlement mechanism. Rather, it is designed to function as a measure of last resort, activated only after all available debt resolution efforts have been exhausted and the borrower is no longer able to retain ownership of the property.

The government believes that the launch of the Agency will complete Greece’s institutional framework for addressing private-sector indebtedness, providing an additional layer of social protection for the most vulnerable households while mitigating the risk of primary residence evictions.