Piraeus Bank: New loan products το jumpstart tourism

Piraeus Bank has enriched the range of products and services it is offering to the tourism sector, with the aim of supporting the effort to restart the relevant activities.

As announced, the bank has launched a new financing product, called Piraeus Tourism Sunrise, which provides the necessary liquidity for new start-ups.

Recognizing the significant contribution of tourism to the economy, as it directly and indirectly contributes 20-25% of GDP, as well as the significant growth prospects of the sector in the short and medium term, Piraeus Bank has as a strategic choice to maintain significant long-term exposure to thye sector.

Ms. Eleni Vrettou, Senior General Manager, Head of Corporate and Investment Banking of Piraeus Bank, during the presentation of the new product, stressed that “the bank remains committed to the strategic goal of supporting the Greek economy through business financing and remains a leader today in financing, in most sectors, for example green energy, infrastructure, agri-food, tourism, shipping and others “.

“We fully agree with the guiding idea that governs the National Plan for Recovery and Sustainability, ie the transformation of the Greek economy,” she noted

Liquidity for 4,000 customers

Today the bank finances more than 4,000 customers that are beneficiaries of the new programs with a total balance approaching 3 billion euros. In fact, according to Ms. Vrettou, a very large segment of this clientele is expected to be interested in the new financing products, due to the reduced liquidity at the moment in the tourism sector.

For his part, Mr. Antonis Katraouras, General Manager, Head of Commercial Banking of Piraeus Bank, referred to the new data emerging in the operation of the hotel industry during the exit period from the pandemic, noting that market conditions are being redefined and the need for liquidity today is more than imperative.

Referring to the new product, Mr. Katraouras stressed that it aims to facilitate the launch and operation of hotel units. In this context, the Piraeus Tourism Sunrise liquidity financing program is addressed to all hotel companies and concerns exclusively the coverage of their operational needs for the start of the new tourist season.

The amount of working capital will be a function of the number of rooms in the accommodation (up to € 2,000 / room), to a maximum of 20% of the projected annual sales. In addition, it offers the possibility of prepayment of their claims to tour operators.

Answering a question from Vima newspaper, he noted that the interest rates associated with the euribor will be very attractive, as the spread will move in single digits.

The forecasts for 2021

During the presentation of Piraeus Tourism Sunrise, Mr. Elias Lekkos, Chief Economist of Piraeus Bank, analyzed the prospects of the tourism industry and stated that the losses of 2020 can be reversed in 2021, and the industry can return to its previous profitability, provided that companies recover 60% of the turnover they lost in 2020.

Regarding the Greek economy, Mr. Lekkos stressed that the outlook is very positive and that the economy in the coming years will benefit significantly from the easing of fiscal policy in Greece and the Eurozone.

He also noted that additional support will be provided by the very favorable liquidity conditions that have prevailed after the return of deposits, the reduction of borrowing costs of the Greek government, and the Recovery and Resilience Facility, which has been launched by the European Commission.