Greek banks prepare for post-RRF credit landscape

As the loan component of the Recovery and Resilience Facility (RRF) approaches its August 31 deadline, Greek banks are preparing for a transition into a post-RRF era. The RRF has been a significant driver of credit expansion in Greece, with a total budget of €35.95 billion, of which €24.6 billion has already been disbursed. Through leveraging, these funds aim to mobilize investments exceeding €60 billion.

Business loans have seen substantial growth, with outstanding balances for both large and small-to-medium enterprises exceeding €130 billion. While the RRF provided access to cheaper financing, the future landscape will shift toward a mosaic of different funding sources. These include ESPA, InvestEU, the European Investment Bank, the European Fund for Strategic Investments (EIF), and various national development programs focused on energy and digital transitions.

Banks will need to adapt their credit policies to maintain momentum, targeting a credit expansion of €8.8 billion this year. Although the RRF approval period for loans ends in August, final disbursements from the European Commission are expected to continue through the end of the year, and remaining resources will continue to flow into the real economy in the coming years.