Disbursements of new loans to small and medium-sized enterprises (SMEs), which form the backbone of the Greek economy, are increasing.
Specifically, according to converging estimates, new business loan disbursements to SMEs by the four systemic banks increased at a rate of around 16% in the first half of the year, reaching 1.21 billion euros. These loans concern businesses with an annual turnover of up to 2.5 million euros
At the same time, according to published data from the European Central Bank (ECB), in June the annual rate of credit expansion in Greece for loans to non-financial corporations was the second highest in the eurozone, at 16.6%.
This rate is six times higher than the average annual credit expansion rate for non-financial corporations across the eurozone (2.7%).
Lithuania ranks first in this category with an annual rate of 19.2%, followed by Greece in second place with 16.6%, Croatia in third with 12.2%, and Estonia in fourth with 11.2%. The Netherlands holds fifth place with an annual growth rate of 10.7%.
At the bottom of the list are Luxembourg (-5.2%), Germany (0.3%), Italy (0.4%), and Finland (0.7%).
According to the same data, in June Greece recorded the third highest performance in the eurozone in terms of the credit expansion rate for the entire (non-financial) private sector, with an annual increase of 11.1%.
In the eurozone, the corresponding rate was 2.9%. Croatia ranked first with 13.3%, followed by Estonia with 11.8%, compared to the eurozone average of 2.9%. At the bottom of the list were Finland (0.5%), Austria (1.0%), Italy (1.4%), and Germany (2%).
The increased rate of disbursements, as noted by banking executives in public statements, also indicates an improvement in the processes of loan evaluation and approval by the banks - particularly in terms of assessing business plans and repayment capacity.
All banks have now established dedicated units and departments specifically for financing medium-sized enterprises, thereby strengthening the role of banks as a driving force for development financing.