Double ENFIA, Supreme Court Ruling, and Servicers’ Legal Uncertainty Hit Greek Banking System in 2026

The new year does not look calm for Greece’s financial sector. Banks and non-performing loan servicers face three major challenges that could affect their financial results, property management strategies, and the investment climate:

1. Double ENFIA on vacant properties: Around 19,300 properties held by banks and servicers will face a double property tax, estimated at €20 million. The government’s goal is to increase property supply and ease rental pressures. The Hellenic Tax Authority’s registration will determine which properties are taxed and which are exempt, including those under renovation or in low-demand areas.
2. Supreme Court ruling on Katseli law loans: The recent decision drastically reduces interest on restructured mortgage loans, with potential losses up to €1 billion and risks to the payment culture. Moody’s highlights that market expectations for favorable treatment of other borrowers could affect financial stability and credit expansion. The government is expected to legally safeguard the decision’s application to contain potential disruptions.
3. Legal uncertainty for loan servicing companies (EDADP): The Council of State referred a preliminary question to the EU Court of Justice regarding whether EDADP companies are considered financial institutions. If not, many foreclosures could be overturned, impacting the property market and non-performing loan management.

These three challenges create a complex landscape for 2026, where the success of the double ENFIA measure could affect property supply and rents, while legal and economic uncertainties shape payment behavior and investor confidence.

According to an Alpha Bank survey, about 35% of Greek residential properties remain unoccupied, with secondary/vacation homes at 22.5% and genuinely vacant properties at 12%. Although down 11.6% from the previous census, the figure remains high, highlighting the need to activate the real estate market.

The main challenge for banks and servicers is to navigate these pressures without destabilizing the market, leveraging legislative and judicial measures to ensure the smooth functioning of the financial system.

Source: pagenews.gr