Credit expansion in Greece is expected to run at an average rate of 8% over the next two years, maintaining the high rates of new loan issuance recorded by banks in 2024-2025.
The main flow of loans, mainly to businesses, will continue to be fueled by the outstanding loans of the Recovery and Resilience Fund. These are investment projects worth approximately 17.7 billion euros, of which €5.8 billion are loans from banks, €7.8 billion are loans from the RRF and another €4 billion are private equity.
If a significant part of the investment proposals that have been contracted to date are finally implemented, it is estimated that the investments that will ultimately be implemented will amount to about €13-14 billion, which will be absorbed over a two-year period from the expiration of the RRF, which ends next August.
A decisive role in the prospect of continuing the strong credit expansion recorded in the last two years is also played by the strong pipeline of financing for large investment projects, mainly in infrastructure, energy and logistics, which is already in a maturation phase.
At the same time, banks are strengthening their presence in corporate lending outside Greece, so that they can offset a possible slowdown in domestic credit expansion.
This strategy, market executives acknowledge, diversifies the sources of revenue and reduces dependence on the domestic economic situation, which remains positive, but sensitive to external shocks. An important source of credit expansion is lending to shipping, with the total portfolio of banks reaching €15 billion and the prospects remaining strong.
