Greece plans 12-year rent path for debtors facing foreclosure

Greece’s systemic banks are expected to sign a €100 million contribution agreement for the Property Acquisition and Leaseback Agency by Nov. 16, Protothema reported in a news article on Nov. 11.

The reported scheme matters because the agency would buy eligible borrowers’ primary homes and rent them back for 12 years, with state subsidies of €70 to €210 a month; the top subsidy is three times the lowest level.

The €100 million bank contribution is equivalent to about 476,000 payments at the maximum €210 monthly subsidy, according to Atlas360 calculations. The comparison shows the scale of the bank agreement against the household support range, without indicating how many borrowers will qualify.

The preferred bidder, Christofferson, Robb & Co, has asked the Ministry of National Economy and Finance for a few additional days to complete the agreement with the banks, according to the report. The firm cited the complexity of the transaction and reaffirmed its commitment to proceed.

The report, citing sources familiar with the process, said the target remains to complete the final contract award, Court of Audit review, concession agreement with the Greek state and parliamentary ratification by January 2027. The agency is expected to start operating immediately afterward.

The agency would generally buy the borrower’s ownership interest at 70% of market value, as assessed by a certified valuer, the report said. If the transaction occurs during enforcement proceedings, payment of the price would cancel the property auction.

Rent for the first year would be based on the Bank of Greece’s latest average interest rate for variable-rate mortgages, the investor’s additional margin and the value of the ownership interest acquired by the agency. The rent would be revised each year on the lease anniversary.

The scheme is aimed at debtors declared bankrupt or facing enforcement against their primary residence by a creditor with a mortgage or other registered security interest. Applicants must obtain a vulnerable debtor certificate electronically through the gov.gr portal.

Applications would be filed on a dedicated online platform with identification details, ownership documents, the vulnerable debtor certificate and either a seizure notice or details of the bankruptcy ruling. The standard deadline is 60 calendar days from the seizure notice or publication of the bankruptcy decision.

During the first six months after the agency is established, that deadline would not apply if the auction has not been scheduled within the two months after the application. In bankruptcy cases, the exemption applies if the ownership interest remains in the bankruptcy estate.

Tenants would be able to repurchase their homes before the 12-year lease expires if they have kept up rent payments and can meet the purchase price. Early repurchase would not require payment of rent for the remaining lease years.

The report said the buyback price would reflect the amount originally paid by the agency and the market value of the ownership interest at repurchase. If three rent payments are outstanding and the tenant does not settle within one month of formal notice, the lease would end and the repurchase right would be lost.

Until the agency starts operating, the Interim Support Programme for Vulnerable Debtors remains available, offering eligible borrowers a suspension of enforcement proceedings and a state contribution of €70 to €210 per month toward mortgage repayments.

Income and property thresholds vary by household type. A single parent with one minor child faces an annual income ceiling of €14,000, while vulnerable debtors with a certified disability of at least 67% can qualify at thresholds of up to €42,000 in annual income and €360,000 in taxable real estate assets, depending on household composition.

Timetable to watch

By Nov. 16, the checkable milestone is whether Greece’s systemic banks sign the €100 million contribution agreement with the Property Acquisition and Leaseback Agency. Signing would allow the tender process to move toward completion, according to the report.

By January 2027, the reported targets are final contract award, Court of Audit review, signature of the state concession agreement and ratification by Parliament. The agency is expected to begin operating immediately after those steps.