According to the latest data from the Bank of Greece, demand for housing loans increased in the first quarter of 2025, primarily due to the launch of the government-backed “My Home II” program. The initiative is designed to support new borrowers by offering generally more favorable terms and final pricing. In contrast, demand for consumer loans remained largely unchanged during the same period.
For the second quarter of 2025, demand for both housing and consumer loans is expected to remain stable.
With regard to business loans, demand from non-financial corporations (NFCs) was also broadly unchanged in the first quarter. According to the Bank of Greece’s Credit Conditions Survey, banks maintained the same lending criteria for NFCs as in the fourth quarter of 2024—an outcome aligned with expectations expressed in the previous survey. Banks also anticipate that lending standards will remain unchanged in the second quarter of 2025.
Overall lending terms for NFCs were eased compared to the previous quarter. This development reflects improved liquidity conditions in the banking sector, competitive market pressures, and improved borrower creditworthiness. These factors contributed to a narrowing of lending margins, particularly for standard loans.
Total loan demand from NFCs remained nearly unchanged in the first quarter of 2025. For the second quarter, banks expect overall demand to remain stable, although an increase in demand from large enterprises is anticipated.
