The Greek banking system is currently healthy and it is time to move on from investments. financial stability fund, which owns a large percentage of the shares of Greek banks. This was announced by the head of the Prime Minister’s Department of Economics. Alexis Patelisspeaking at the Greek American Chamber Economics Conference, noting that “the time has come to increase competition in the banking system.”

Mr. Patelis talked about removing legal barriers for fintech companies to provide loans, as well as other interventions that could encourage competition, and cited as an example the IRIS DIAS system, which offers, in his words, “cheaper direct payments compared to as long as it is activated by both parties. These are systems that will lead to an even greater increase in electronic transactions in the future,” he added.

The head of the Prime Minister’s Economic Department spoke about the government’s intervention in the banking system.

The head of the Prime Minister’s Economic Department called government intervention in the banking system one of the main areas to attract investment, noting that “in 2019, the banking system was a factor in systemic instability, as bad loans accounted for about half of the portfolio. and therefore there could be no credit expansion.” Mr. Patelis emphasized that with the help of the Hercules plan, the banks were able to reduce the percentage of overdue loans to single digits. In addition, the Second Chance Act created for the first time, in his words, “an integrated framework for private debt restructuring and bankruptcy in our country.” Among the instruments, he added the so-called out-of-court mechanism, to which those who have debts to banks and the state can turn and restructure, and therefore, as he noted, “the government is moving towards more such arrangements.”

Mr. Patelis reiterated that we have an investment-grade target in 2023 and emphasized that the rating agencies are looking at three issues – among them debt, which should be steadily reduced. “Our country’s debt-to-GDP ratio will decline more this year than any other country in the world,” he noted, while two other issues are accelerating the country’s growth rate through investment and reform. The 2023 big bet is a dual election, Mr. Patelis noted, arguing that “after self-confidence, even more investment will be signaled as political uncertainty is removed and, above all, two four-year terms will show investors that the country takes us seriously and wants to stay on the path of development.”