Hellenic Development Bank funding drives GDP growth amid Greek market volatility

A study by the Institute of Economic and Industrial Research (IOBE) regarding the Hellenic Development Bank (HDB) programs for the period 2019-2025 indicates a significant economic impact. Between 2019 and September 2026, the HDB approved €15.57 billion in funding for businesses and households through 89,214 loans. The study found that for every €1 committed, €3.58 in GDP is generated, alongside €2.10 in worker income and €1.43 in public revenue. While the impact is substantial, totaling €12.5 billion in GDP and 383,600 annual full-time jobs, the benefits have been largely concentrated in Athens and Thessaloniki, leaving regions like Western Greece with fewer opportunities.

Separately, the Greek stock market experienced a significant sell-off, particularly within the banking sector. The banking index fell by 7.9% in recent sessions, with Piraeus Bank dropping 9.17% and Eurobank falling 8.03%. Amidst this downturn, Allwyn was a notable exception, seeing a 2.20% increase. Additionally, Euronext Athens has maintained its decision to implement new fee structures despite opposition from market participants who argue the costs are excessive.