“The non-settlement of the procurement issue offers nothing neither to the banks, nor to the government, nor to the society” pointed out the Minister of National Economy and Finance Kostis Hatzidakis speaking today at the annual general meeting of the Hellenic Banks Association.

The minister called on the Greek banks to adopt fairer systems based on the practices of other European banks or companies with large customer networks in Greece, so that there is no need for governmental legislative intervention.

The minister also announced a small quantitative expansion of the “Hercules” program with the aim of further reducing bad loans and a small extension of time for the inclusion of self-employed and freelance professionals in the IRIS system after prior relevant information to the obligees from the AADE, given that the period of implementation of the measure coincided with the interconnection of cash registers with POS.

In particular, Mr. Hatzidakis presented five priorities for the banking sector which include:

1. Support continuously and with all available competition tools.

“In this direction, we are advancing rapidly in the creation of the so-called 5th banking pillar, settling all the related outstanding issues. We want the relevant issues to be closed as soon as possible, within 2024”, he pointed out. In this context, the arrangements were preceded by which non-bank institutions were given the possibility to give mortgages and some forms of business loans, commissions for small transactions were reduced by 50% and tax-free was established for interest-bearing Treasury bills.

2. The settlement of all outstanding issues in relation to the “Hercules” program.

“Our goal in the near future is for the Greek banks, systemic and non-systemic, to limit to very low, I would say European levels, the percentage of their bad loans”, noted the minister and added: “I declare that if the relevant fund that has been approved by the Directorate General for Competition of the European Commission is not enough, we intend to submit a related additional request. In any case, the relative amount is not expected to be particularly significant. And it is worth it in order to send to Greece and abroad a message of even greater strength of the banking system”.

With the “Hercules” program, the minister reminded, we ensured the rapid strengthening of the stability and liquidity of the banking system, without burdening the Greek taxpayer.

3. Stronger support for the real economy and especially small and medium enterprises.

Mr. Hatzidakis underlined that the government has created targeted financing tools for SMEs, such as the new Entrepreneurship Fund, which combines a loan guarantee with an interest rate subsidy of up to 70%. “As we undertake the initiatives that belong to us (enlargement of “Hercules” and European financial instruments) we expect you to intensify your own efforts to strengthen the economy and liquidity as you are already doing for example through the Recovery Fund”, he said addressed to bank executives.

4. Further strengthening of transparency and fairness in procurement.

“The procurement issue continues to preoccupy businesses and the public. On the subject of charging customers there are always ideas, either from the European banking market or from other branches of the Greek economy, which the banks could adopt. I am sure that the Greek banks will move, each in their own way and based on their commercial policy, in this direction without needing any other intervention. Not settling this issue does nothing for the banks, the government, or society,” the minister stressed.

5. Rapid expansion of the IRIS direct payment system.

It is a system that – as he mentioned – has already been “embraced” by 2.7 million, our fellow citizens, gaining the ability to carry out free and easy transactions of up to 500 euros. “In a few days, the deadline we had set for the inclusion of self-employed and freelance professionals in the system expires. We are ready to give one short extensionin order to facilitate the process – also taking into account the fact that lately everyone’s attention has been focused on the interconnection of cash registers with POS and perhaps there has not been the mobilization that one would have wished for” he noted.

For that matter there will be an update of those liable from AADE.

However, Mr. Hatzidakis underlined that the next step will be the extension of direct payments to all businesses and to the entire range of transactions, both in e-commerce and in stores by March 2025.

“The government wants a robust banking system that acts as a driver of economic growth. But we also want a banking system with competition between banks. A banking system that will provide attractive returns to savers and liquidity to businesses and households”, noted the minister and concluded: “We are particularly satisfied because in the last five years with this government, important steps have been taken for the banking system, but also for the our economy as a whole.

The positive developments are recorded in the recent Post Program Surveillance Report of the European Commission. We are here to ensure that progress but also to ensure that we move forward with fairness and address all remaining structural problems at all levels.”