In 2023 they shot up to €4.489 million, showing an increase of almost 245%. This is the highest level since the Central Bank began releasing data in December 2014
High interest rates prompted borrowers and banks to engage in loan renegotiations (involving extensions or varying other loan terms) in an effort to prevent loans from deteriorating and avoid NPLs rising. According to data from the Central Bank, the total of renegotiations in 2023 shot up to almost €4.5 billion, showing an increase of 245% on an annual basis.
Traditionally, the lion's share of renegotiations are presented by corporate loans over €1 million, which in 2023 corresponded to 68% of the total and reached €3 billion. Compared to 2022, the renegotiations of these loans showed an increase of 183%.
Mortgage renegotiations also saw a jump of 761%, reaching €0.92 billion in 2023, compared to just €107 million in 2022. In terms of total renegotiations, mortgage settlements reached 20 %.
Renegotiations of corporate loans up to €1 million increased by 417% compared to 2022 and amounted to €380 million, accounting for 8.5% of the total. Renegotiations of other loans amounted to €90 million compared to €24 million in 2022, showing an increase of 272% and accounting for 2% of the total.
Consumer loan renegotiations also showed a 111% year-on-year increase in 2023, which amounted to €39 million compared to €19 million in 2022 and constituted 0.9% of all loans renegotiated in 2023.
Lending is stable
Net new lending in 2023 stood at €3,269 million compared to €3,272 million a year ago, showing a marginal decrease of 0.1%.
The largest share of total loans was presented by corporate loans over €1 million, which amounted to €1.4 billion, showing an annual increase of 5%. Corporate loans of over €1 million corresponded to 43% of the total.
High interest rates combined with high construction costs affected home loans, which stood at €1.01 billion, an annual decrease of 14%, compared to €1.2 billion in 2022. As a percentage of the total, mortgage loans in 2023 accounted for 31% of the total.
Corporate loans up to €1 million also showed a small annual decrease, at a rate of 1%, which amounted to €0.52 billion compared to €0.53 billion in 2022 and constituted 16% of total new lending in 2023.
Despite high interest rates, consumer loans in 2023 increased to €230m compared to €155m in 2022, representing an annual increase of 48% and accounting for 7% of total net new loans.
Finally, the category of other loans also increased by 23%, which amounted to €102 million and corresponded to 3% of the total.