Six initiatives of the Ministry of National Economy and Finance to support the banking sector, which is a key partner in the reform effort, were presented by the Minister of National Economy and Finance, Kostis Hatzidakis, speaking today at an event of the Hellenic Banking Union (EET) to celebrate the 95th anniversary of its establishment.

“It is our priority to support both the robustness of the banking sector and the increase of competition within it. By offering competitive financial products to small and large businesses, the banking sector can help them modernize and expand their operations to become competitive in the global market. This must be combined with the availability of attractive financing opportunities for Greek households. It goes without saying that a basic condition for the banking sector to be able to provide effective support to the Greek economy is to be healthy and competitive on its own,” the minister stressed.

In this direction, as he said, the following are being promoted:

1. The implementation of the next phase of the “Hercules” program which has been formed with the contribution of the Bank of Greece and is under negotiation with the European Commission. “The third phase of “Hercules” will be another important step towards restoring confidence in the banking system, helping systemic and non-systemic banks to strengthen their balance sheets,” he stressed.

2. The expansion of “Herakles” will contribute to the emergence of the so-called fifth pillar of the Greek banking system which will strengthen the competitiveness of the sector and offer a wider range of options for businesses and households.

3. A bill will soon be introduced that will enable non-banking institutions to offer mortgages and corporate loans, expanding the range of businesses that have access to finance.

4. With the same bill, the EU Directive on Servicers, which regulates the sale, purchase and servicing of non-performing loans, will be incorporated into Greek legislation. The bill would establish an obligation for Servicers to provide personalized information to borrowers to increase the transparency of the process.

5. Promoting better savings options: “The role of a healthy and competitive banking system includes offering a wide range of options to consumers, including deposit accounts with competitive interest rates,” said Mr Hatzidakis. “Following a meeting with EET, the major banks agreed to further promote more attractive products such as time deposits. This has already started to some extent, but we expect it to expand further.”

6. The disinvestment of the Financial Stability Fund from the share capital of the banks. Last week, as Mr. Hatzidakis said, the disposal of the HFSF’s participation in the share capital of Eurobank began. “The rest of the banks, he added, will follow in the near future and different divestment strategies will be applied in each case. This sends a clear message to the international investment community that Greece is committed to its reform agenda. It also shows that our banking sector is returning to normalcy and is an attractive investment target thanks to its stability and growth prospects.”

The minister also referred to the progress of the economy, highlighting the high growth rate (2.3% in 2023, three times the eurozone average and 3% in 2024), the increase in investment and the decrease in unemployment.

Results due to fiscal policy that restored confidence, tax cuts that made the country more attractive for investment, labor law reform that modernized the labor market, and licensing simplification that improved the business environment. He also emphasized that in previous years the economy recorded an overperformance in relation to the budget figures.

“Our goal, he concluded, is to continue to positively surprise, both inside and outside the country. For this reason, we will continue on the path of economic reliability and reforms.”