New financing to businesses in the first quarter of 2022 was reduced on an annual basis, reaching 1.02 billion euros from 1.36 billion euros in the corresponding period last year, according to data from the Bank of Greece.
The change is mainly due to the reduced flow of loans to small and medium-sized enterprises at the beginning of this year. On the other hand, the decline for large companies was marginal.
According to banking sources, this is an expected development. As they explain, at the beginning of 2021 the market was financed even precautionarily, as the pandemic was on the rise and the economy was in a lockdown, making it necessary to build defense zones for difficult times.
During that period, a significant increase in new loans was recorded, with the support of the Hellenic Development Bank (EBA) guarantee and interest subsidy actions, which were mainly aimed at small and medium-sized businesses.
In this context, the liquidity needs of the companies were largely met, as a result of which the requests for financing from credible clients were subsequently reduced.
The same circles even estimate that the new loans would be even lower if in the first months of 2022 there was no increase in the demand for working capital, due to the market freeze caused by the coronavirus, inflation and the extreme weather phenomena.
What the official data show
The data published by the Bank of Greece are indicative of the above trends:
In the first quarter of 2021, 868 million euros were granted to small and medium enterprises (SMEs), an amount that corresponds to 64% of the new loans of the specific period.
During the same period, financing to large companies amounted to 490 million euros.
In the first quarter of 2022, the contracts signed related to loans of 544 million euros to SMEs, an amount reduced by 37% on an annual basis, while their share in total lending fell by 11 basis points to 53%.
Respectively, loans to large companies reached 475 million euros, remaining virtually unchanged on an annual basis (down only 3.1%).
In the whole economy, new disbursements fell by 25%, as a result of the decline in the size of SMEs
Champion sectors
The same data show that 60% of new loans in the first quarter of 2022, ie 609 million euros out of 1.02 billion euros, went to three general sectors.
The lion’s share, 268 million euros, was received by processing, followed by trade (retail, wholesale) with 199 million euros and the activities of accommodation and catering services with 142 million euros.
Lending to the administrative and support sector reached € 100 million, while construction companies received € 91 million.
Latest News
Bank of Greece Governor Says EU will Retaliate to Trump’s Tarrifs
The Bank of Greece Governor defended the independence of central banks amid criticism from U.S. President-elect Donald Trump, who had publicly commented on Federal Reserve Chair Jerome Powel
September in Greece Winning Tourists Over from US, Germany
Tourists continue to visit Greece off-season into Sept. with the number of inbound travelers up by 6.6% and a 7.9% rise in travel receipts.
Bitcoin Surges Toward $100K Amid Pro-Crypto Optimism in US
According to Reuters, the cryptocurrency surged to an all-time high, briefly exceeding $96,898 during Asian trading hours.
Greek Driver Violations at a Touch of a Button
Traffic offences recorded in the last five years by Greece’s “Driver Behavior Control System” are now available on Gov.gr Wallet
Milan Tops List of Most Expensive Streets, Athens’ Ermou Holds Steady at 15th Place
In Athens, following Ermou Street is the southern suburb of Glyfada and Tsimiski Street in Thessaloniki.
New Gov.gr Service Enables Secure Reporting of Minor-Related Delinquency
It should also be noted that via the recently introduced initiative ‘Safe Youth’ application citizens have access to specially tailored informative material regarding the safety of children and adolescents
Thousands Strike in Athens Over Soaring Living Costs and Stagnant Wages
Inflation, particularly in food prices, has been crushing Greek households
Greece Overhauls Property Valuation System
Greece plans to launch a revamped property value registry in 2025 and overhaul the way objective values are calculated to enhance tax revenue and improve transparency.
Greece’s New Tax Bill Foresees Tax Relief Beyond Big Business
Tax relief measures in Greece are proposed for freelancers, property owners and farmers, along with 'big business'
Unions Call Nationwide Industrial Strike for Wed.
Mass transits are usually affected, especially in the greater Athens-Piraeus area, although bus and metro services are curtailed but not fully halted