Millions of unresolved bad loans dating back to Greece’s debt crisis are still holding back the country’s economic recovery, according to an International Monetary Fund official.
According to Reuters, the IMF estimates that nearly three million non-performing loans, affecting about 2.4 million people, remain tied up in the financial system, limiting access to credit for households and businesses.
Despite a broader rebound in the economy — including stronger bank performance and early repayment of bailout loans — many Greeks remain excluded from lending markets due to outstanding debts.
An IMF financial markets specialist said the volume of bad loans has overwhelmed the system, calling for further reforms to address the issue and restore normal lending conditions.
During the 2009–2018 crisis, non-performing loans surged to nearly half of all bank portfolios as the economy contracted sharply. While Greece has since introduced measures such as a secondary market for bad loans and asset protection schemes, progress in resolving cases has been slow.
Lengthy legal disputes between banks, loan servicers and borrowers — often delayed by overburdened courts — have contributed to the backlog.
The ongoing problem has also affected business lending, with banks focusing credit on large corporations while small and medium-sized enterprises remain largely shut out of financing.
The IMF says repairing household finances and bringing more borrowers back into the system will be key to ensuring a more inclusive and sustainable recovery.