Greece’s private debt to banks, tax authorities, and social security funds continued rising in the third quarter of 2025, with a new report warning that the trend remains a major vulnerability for the economy.
Private debt refers to the total financial obligations of households and businesses. Unlike public debt, which is owed by the government, private debt reflects the financial pressure inside the real economy — on citizens and firms.
The inaugural report, titled “Private Debt in the Greek Economy,” was published by the Foundation for Economic & Industrial Research in collaboration with CEPAL Hellas, a Greek financial services company. In the report, private debt is referred to as a slow-burning threat under the foundations of the Greek economy.
According to the report, total private debt kept increasing due to credit expansion and the continued buildup of obligations to the public sector, while non-performing loans across the economy remained high.
This comes at a time when the cost of living in the country remains under pressure. Housing prices have been increasing steadily, with residential property prices continuing to grow annually, while rents in major cities—especially Athens—have surged sharply in recent years. At the same time, inflation continues to erode purchasing power with significant increases in key categories.
Despite the recent increase in the minimum wage, which has reached around €920 ($1,061), wages in Greece remain relatively low by EU standards, while purchasing power is among the weakest in the European Union, meaning households face a growing gap between income and living costs — a factor that contributes directly to the buildup of private debt.
Greece’s private debt climbed to 164% of GDP
Based on third-quarter 2025 data, the total debt burden carried by households and businesses in Greece amounted to €407.6 billion ($467 billion), equivalent to 164% of GDP. That marks a rise from €392.8 billion ($450 billion) in 2024.
The increase was driven by several factors. Bank lending expanded by €6.8 billion ($7.7 billion), loans held by servicers rose by €4.5 billion ($5 billion), and new obligations to tax authorities and social security funds added another €3.6 billion ($4.1 billion). The figures show that Greece’s private debt problem is not only growing in scale but also deepening across various segments of the economy.
Overdue liabilities remain the biggest concern
The report’s most troubling finding is the scale of debt that is already deeply overdue. Of the total €407.6 billion ($467 billion), €236.5 billion ($271 billion), or 58%, falls into that category.
The state remains the largest creditor. Nearly 70% of overdue debts concern liabilities to the Independent Authority for Public Revenue, known as AADE, and National Social Security Entity (EFKA). Tax debt remains particularly high at €111.9 billion ($128 billion), with legal entities accounting for 62% of the total.
Old social security debt still weighs heavily
A large share of social security arrears dates back many years. According to the report, 63.7% of total social security debt, or around €32.3 billion ($37 billion), relates to obligations created before, and in some cases as far back as, 2010.
That suggests a substantial part of Greece’s private debt burden is deeply rooted and has remained unresolved for more than a decade.