“Hercules” scheme: €71.8M in state revenues in Q1 2026

Specifically, the Greek State collected €71.8 million in fees related to the guarantees of the scheme, which serves as a key tool for reducing non-performing loans in the banking system.

At the same time, during the same period, approximately €400 million of senior bonds were repaid, leading to a corresponding reduction in the state guarantees provided under the “Hercules” scheme.

According to the Public Debt Bulletin, the total amount of guarantees provided by the Greek State stood at €16.7 billion at the end of the first quarter of 2026, down from €17.1 billion at the end of the previous quarter.

However, the pace of de-risking would have been stronger had it not been for additional guarantees amounting to €2.3 billion issued during 2025 for the inclusion of new securitisations in the programme, relating to non-performing loan portfolios of Attica Bank (now CrediaBank), National Bank of Greece, and Alpha Bank.

At the same time, the repayment of senior bonds is, according to market sources, creating room for non-performing loan servicers holding lower-ranking securities to consider repurchasing the underlying loan portfolios.

As indicated in recent reports, including doValue’s update on Eurobank’s Cairo securitisation, servicers have the ability to exercise loan buy-back options on predetermined interest payment dates, provided that valuations are deemed favourable, by paying the agreed price to bond investors.

It is noted that in 2025, state revenues from fees under the “Hercules” scheme amounted to €293.3 million, confirming the significant fiscal contribution of the guarantee mechanism to the clean-up of bank balance sheets.