“Greek banks have managed to pass from the era of crisis and recapitalizations, to the era when high-quality investors are actually expressing interest in them. That didn’t happen, it did! And this success is the policy of this government, which focused on the development of the economy, which instead of “demonizing” banks recognizes that they have a vital role in this development process, as it happens in all the advanced countries of the world.

This was underlined yesterday by the Minister of National Economy and Finance, Kostis Hatzidakis, during his speech at the event for the presentation of the new corporate identity of Piraeus.

As he said, Greek banks “are strong again and ready to focus on what their job is: financing and supporting the real economy.”

“Our government wants a robust banking system, with competition between banks. A banking system that will provide attractive returns to savers and liquidity to businesses and households”, noted Mr. Hatzidakis. The initiatives of the Ministry of National Affairs and Finance are also moving in this direction, such as:

  • Institutionalization of the possibility for non-banking institutions to grant loans, in addition to consumer and housing and some kind of business loans.
  • The support of the IRIS system, with low or zero transaction fees.
  • The 50% reduction in fees for microtransactions up to 10 euros via POS.
  • The promotion of the so-called fifth pillar of the Greek banking system.

At the same time, the minister recalled that the red loans in the banks’ portfolios have fallen below the “psychological limit” of 10 billion. Deposits have increased by 50 billion euros. Bank credit expansion strengthened compared to 2019, while for the first time after many years Greek banks are profitable again. “Which strengthens their prospects for the future, increases State revenues, but also their contribution to the national economy”, he emphasized.

Mr. Hatzidakis placed particular emphasis on the absolutely successful, as he described it, disinvestment of the HFSF by the banks, which has brought direct economic benefits for the Greek public in the amount of 3.5 billion euros. “It marks the return of the Greek banking system to normality,” the Minister said and added: “All of us here remember what the situation was with Piraeus Bank until 2019, with the major problems that existed. The recent disinvestment of the HFSF was an underlining of the Bank’s progress, but also a vote of confidence from the international investment community. The success of selling 27% of its shares to foreign and Greek investors was unprecedented!”

Afterwards, Mr. Hatzidakis referred to three challenges that we have to face in the new chapter that has opened in the Greek economy and the Greek banking system:

  • Challenge one: The green transition. A significant wave of green investments is required, as the Minister said. The NSRF and the Recovery Fund are important tools, but they are not enough. Private capital should also be mobilized. According to ESEK, it is estimated that investments amounting to 192 billion euros are needed until 2030.
  • Challenge two: The ongoing digitization of the economy. Which changes both the internal functioning of banks and the way they interact with their external environment. While at the same time it also creates new digital risks. Here again funding is important. 20% of RRF loans are focused on digital actions.
  • Challenge three: Geopolitical instability, which makes strengthening bank resilience even more important. And it creates increased demands on their capital adequacy, liquidity and portfolio quality – so they can weather potential turbulence.

In order to face these challenges, consultation and consensus is required at the national level, but also actions at the European level, according to the Minister. “I am referring to the completion of the Banking Union, the 3rd pillar which has been pending for a long time, the pan-European deposit guarantee. And in the deepening of the Capital Market Union (CMU), for the mobilization of stagnant funds. I hope that larger countries besides Greece will actually move in this direction, not just theoretically. The Government of Greece will proceed with determination in all that it has to do in both of these outstanding issues,” he noted.

“Today, despite the problems,” said Mr. Hatzidakis, “Greece is one of the fastest growing economies in Europe, with increasing employment and improving public finances. The banking sector was and is a key partner in this reform effort. I am sure that we will continue in the same pattern in the coming years.”