The institutions are soon expected to give the green light to Greek banks with a capital surplus to proceed with the distribution of dividends.
The average dividend yield is estimated between 15%-20%, while the rating agencies are talking about increased capital from Greek credit institutions, which is expected to give the banks further possibilities for share buybacks. Based on bank estimates, 250-300 basis points of excess capital is expected to be recorded compared to CET1 targets in 2025.
Banks will hold a meeting with the Single Resolution Board and the SSM on Thursday, January 11, to discuss the major issues that concern the Greek credit system, which is changing at a rapid pace, and in several cases has even shown much better results compared to the European banks.
Emphasis will be placed on credit expansion but also on bad loans, old and new ones, since our country still has the largest percentage of bad loans in the EU. However, credit expansion is expected to be positively closed despite the high repayments.
Based on November’s data, credit expansion stood at 230 million euros, but with the help of EU funds and the Recovery and Resilience Facility, it is estimated that we will see a credit expansion of 3 billion euros in 2023.
However, high interest rates have left behind financing which is considered necessary to accelerate so that Greece’s growth rates will not fall.
