European Bank for Reconstruction and Development (EBRD) First Vice President Jürgen Rigterink sees a positive outlook for an accelerating economy in 2024 as he estimates that its resources Recovery Fund they will reduce any external risks. According to him, the macroeconomic stability and reforms carried out in recent years are recognized by investors, and if the next government continues the development and investment-friendly policy, the next steps to achieve investment grade will be taken in the coming months. He also expresses optimism that the country will remain on track for reform even after the elections.

– In recent years, the fundamentals of Greek banks have improved in the context of the improvement of the Greek economy and the reduction of non-performing loans (NPL) to single digits. The government’s Hercules Asset Protection Scheme has been largely successful in helping wipe non-performing assets off banks’ balance sheets through securitization. However, despite significant progress, local banks still have a higher level of non-performing loans compared to the EU average. and therefore they must continue their efforts.

After initially investing in the recapitalization of 4 systemically important banks in 2015, we have continued to support them by investing in Minimum Equity and Eligible Liability (MREL) instruments, as well as “innovative” structures such as as synthetic securitizations aimed at strengthening their capital base. Our bank’s Trade Facilitation Program (TFP) has remained very effective, facilitating transactions totaling €3 billion. Our total investment in Greek financial institutions exceeds 1 billion euros.

– With ongoing efforts to reduce non-performing loans, coupled with a large deficit of €8 billion in own financial instruments (collateral in a position) to be covered by 2025, Greek banks have shifted their focus. in optimizing their capital to support the implementation of their development strategy in order to increase their profitability. In addition, access to international capital markets for Greek issuers has been difficult for a number of reasons, including non-investment grade status, and reduced investor appetite given the current market volatility.

– Absolutely. We believe that the Recovery Fund will help strengthen private investment in Greece and we are very happy to support this effort.

The Greek Recovery and Resilience Plan is very much in line with our country’s strategy. Given our focus on the private sector and our remarkable track record in bringing together investment, technical assistance and political commitment to promote sustainable development, we are a natural partner in Greece’s efforts to address the issue of the use of Recovery and Resilience Fund resources. , in compliance with high quality requirements and in a short time, established by the Regulations on the Fund.

We are also the first partner to sign an operating agreement for the management and disposal of the Recovery Fund’s credit resources. In less than a year, we were able to successfully complete 3 transactions to allocate more than 20% of the 500 million euros we manage to support OTE, Hatsopoulos and Paputsanis.

The resources of the Recovery Fund will reduce any external risks to the Greek economy.

Our cooperation is focused on 5 priority areas: green transition, digitalization, export orientation, economies of scale and innovation (research and development). We will soon announce our fourth Recovery Fund transaction, which we are very proud of as an innovative green project.

– The economy is slowing down, but the overall picture remains positive. A slowdown is projected in 2023, reflecting global developments (GDP growth of 1.5%, according to our latest estimates), but in 2024 the pace will accelerate to 3%.

Projects funded by the Recovery Fund, both through loans and grants, are progressing well and are mitigating the risks associated with global and regional shocks.

Greece’s achievements in recent years in terms of macroeconomic stability and growth, as well as reform efforts, are increasingly recognized by international investors. Further steps towards finally reaching investment grade are likely in the coming months, provided the post-election government continues its growth and investment-friendly policies.

“We were pleased to see that Greece has taken the necessary measures and made political commitments that have increased the resilience of its economy and strengthened its financial stability in recent years, leading to the successful completion of the EU’s enhanced surveillance regime. last year.

The efforts of recent governments have laid the groundwork for years to come and we remain optimistic that the country will continue on its path of reform and continue to achieve the good results it has achieved so far.

– In 2018, we accepted the request of the Greek authorities to extend our work in the country. Having weighed Greece’s progress against the need for further support, our shareholders have decided to limit further EBRD commitments until the end of 2025.

We are now focused on how we can continue to support the Greek economy until the end of our mandate.

“We will direct investments where our support is most needed, improving the competitiveness of the private sector, supporting the transition to a greener economy and further developing the financial sector and capital markets. These will be our three main priorities in Greece.

Our political commitment is expected to complement investment and help improve the business climate and advance economic reforms, as well as strengthen private sector participation, including public-private partnerships. We will also continue to work closely with the Greek government to support the implementation of the Country Recovery and Resilience Plan and the subsequent provision of finance to the Greek economy.

Big advantage in green energy

– Since we started investing in Greece 8 years ago, significant progress has been made. The country has already taken important steps to reform its economy and make it an attractive investment destination.

One of Greece’s main comparative advantages is its renewable energy prospects. Greece is blessed with an abundance of sun and wind that could not only provide energy for its own needs, but also export it to other countries.

The Green Transition remains a top priority for the EBRD and the Greek Government, and we will continue to support green projects in the country. Last year, more than half of our investments in Greece were related to environmental protection.

We have supported some of the country’s most ambitious plans, from green bond investments to support for renewable energy and green buildings.

Greece’s ambitions can be realized if it makes the most of all available sources of finance to accelerate the expansion of renewable energy. Governance remains Greece’s weak point compared to many of its EU partners, while further progress is needed in areas such as public administration and judicial reform.

The government’s digital transition plans are already making a difference and their implementation is likely to accelerate, making the country even more attractive to investors.