On Mar. 20, GRE CB published decision on macro-prudential measures.
GRE CB published decision 227/1 during meeting of Mar. 8, 2024, on macro-preventive measures regarding the loan burden applied at the borrower level for loans, credits.
To natural persons secured by residential property under art 133A of Law 4261/2014.
Main Points
Re loans and credits approved by financial institutions and entities based in Greece.
And institutions/entities based in countries inside/outside the EU with a Greek branch.
Measures don't apply to loans and other credits of art 47a, 47b of EU's CRR.
To loans and other credits linked to national housing policy/green transition programs.
Or to transferred portfolios from loan and credit receivables management companies.
Maximum allowed limit for loan-to-value at origination (LTV-O) 90% for borrowers who are first-time buyers and 80% re the others; doesn't apply to private leasing contracts.
A percentage of up to 10% of the total number of loans and other credits approved each calendar quarter at the level of an institution/entity may exceed the LTV-O limits.
Maximum allowed limit for the debt service-to-income at origination (DSTI-O) ratio of 50% for borrowers who are first-time buyers and then, 40% for all other borrowers.
A percentage of up to 10% of the total number of loans, other credits approved each calendar quarter at the level of an institution/entity may exceed the DSTI-O limits.
Separate assessment of exceeding the limits for first-time buyers and other borrowers.
Effectiveness
The decision will be published in the gazette and enters into force on Jan. 1, 2025.
Mar. 21, 2024 Reminder
On Mar. 21, 2024, GRE CB reminded of decision establishing macro-prudential measures for loans, other credits to natural persons secured by residential property.
Highlighted the main points of the measures' application and gave term definitions.
Regulators
GRE CB
Entity Types
Bank; BHC; CU
Reference
PR, 3/21/2024; PR, 3/20/2024; Mt, Dec 227/1, 3/8/2024; Law 4261/2014; CRD/CRR Reg 575/2013
