The Housing Finance Corporation (SHO) has described the launch of a tender process for the sale of non-performing loans (NPLs) as a significant step in its efforts to strengthen and restructure the organisation.
The SHO has issued a tender for the procurement of external advisory services, including legal, tax, accounting and other specialised support, to facilitate the sale of an NPL portfolio.
Under the budget approved by parliament, the portfolio earmarked for sale amounts to €135 million, of which €50 million relates to loans secured by properties valued above €250,000, while €85 million concerns loans that have been in arrears for more than eight years.
According to tender documents, the process will be carried out in line with regulatory requirements and supervisory guidelines and tailored to the SHO's specific needs.
The contract, valued at €1.3 million and lasting 20 months, includes:
- Project management and transaction support
- Data quality review and preparation of the loan data tape
- Support for transaction implementation and regulatory approvals
- Accounting and tax advisory services
- Legal and regulatory support
- Risk assessment for the transaction
- Assistance with the transfer of portfolio information to the successful bidder
Strategic decision
Speaking to Politis, SHO Director General Christoforos Kaplanis said the organisation had committed, through its 2026 budget, to taking corrective measures in relation to a loan portfolio that includes a high proportion of long-standing NPLs.
He noted that the approved budget provides for the sale of a significant portion of those loans, focusing on facilities secured by properties worth more than €250,000 or loans with arrears exceeding eight years, or 96 instalments.
"We consider this a very important step in the restructuring of this segment of our loan portfolio," Kaplanis said.
He added that similar measures have been adopted by other banking institutions and said the transaction would further strengthen the SHO's financial position and capacity to continue fulfilling its mission, including providing financing to households, with priority given to middle- and lower-income groups.
Kaplanis also said the organisation is continuing with other strategic initiatives, including the independent upgrade of its IT systems, while maintaining strong liquidity and offering a range of lending and deposit products.
NPL figures
According to figures submitted to parliament, the SHO's non-performing loans stood at €255.4 million at the end of February 2026, representing 39.7% of total loans, compared with €256.6 million, or 39.8%, a month earlier.
The NPL ratio stood at 39.8% at the end of 2025 and 41.1% in 2024.
Between 1 January 2024 and 28 February 2026, the SHO completed 486 restructuring solutions worth €50.6 million for loans financed from its own funds.
During the same period, it completed 355 restructuring and settlement cases worth €23.1 million for government-funded loans, as well as 756 cases worth €11.8 million involving loans financed through the Equal Burden Sharing Agency.
In total, the organisation handled 1,597 cases amounting to €85.6 million.
