GREECE Law and Practice Contributed by: Ioannis Charalampopoulos, Daphne Kasimati, Afroditi Kazani and Ioanna Exarchou, Machas & Partners
financial structures. This trend aligns with broader European high-yield market activity, which is becom- ing more attractive due to the demand for yield amidst global economic uncertainty. 1.4 Alternative Credit Providers The Greek loan market operates as a regulated envi- ronment where lending activities are primarily reserved for duly licensed credit institutions. Other financial institutions, such as credit companies, microfinance institutions and servicers, licensed by the Bank of Greece (BoG) or benefiting from the EU passport- ing rules, may also provide, under certain conditions, loans or other forms of credit. Special treatment has been formed by the legal practice for bond loans, which are only issued by Sociétés Anonymes and subscribed by private placement or through a public offering. Notably, a major regulatory change in 2023 broadened the scope of credit companies and servicers. Credit companies may now provide all forms of credit not only to individuals but also to businesses, while servicers may now provide credit for refinancing or restructuring purposes in relation to loans they manage themselves or on behalf of other servicers. Despite these changes, market uptake has so far been limited. Regarding microfinance institutions, a key 2025 reform strengthened the framework by aligning it with EU principles of responsible microcredit. The law stream- lines licensing, clarifies oversight, and modernises procedures such as liquidation and special clearance procedure, intending to foster greater access to small- scale financing and improve institutional efficiency. 1.5 Banking and Finance Techniques HoldCos are gaining momentum in the Greek credit market. The inclusion of a holding company in the corporate structure may allow tax optimisation and efficiency with respect to dividends and interest pay- ments. Preferred equity is gaining ground, given the very active involvement of private equity and venture capital schemes in the Greek market. These inves- tors have developed a range of preferred equity struc- tures tailored to meet the specific needs of various
industries, thereby enhancing flexibility and appeal for Greek businesses seeking capital. 1.6 ESG/Sustainability-Linked Lending Sustainability considerations have become increas- ingly embedded in Greek lending practices, particu- larly through syndicated financings where Greek sys- temic banks integrate ESG compliance requirements and indemnities for breaches. Green and sustainabili- ty-linked lending is especially prominent in the energy sector, with banks and international investors financ- ing renewable projects and green infrastructure in line with the EU Green Deal and Fit-for-55 targets. Beyond the environmental sector, inclusive financing initiatives have also gained ground through state- backed programmes. The “My Home II” scheme sup- ports primary residence acquisition via co-financed housing loans, half of which are interest-free through RRF funds, while the “Upgrade My Home” programme provides co-financed loans for improving the energy efficiency of existing dwellings. These initiatives com- bine social policy goals with environmental sustain- ability, broadening the reach of sustainable finance at the retail level. The regulatory framework is also evolving. Greece has transposed the Corporate Sustainability Report- ing Directive through Law 5164/2024, which aligns with the European Sustainability Reporting Stand- ards (ESRS), imposing enhanced reporting obliga- tions on the ESG risks and policies of the financial institutions. In parallel, the EU Taxonomy Regulation (EU 2020/852) establishes a common classification for environmentally sustainable activities, shaping the design and labelling of ESG-linked financial products. 2. Authorisation 2.1 Providing Financing to a Company Credit institutions established and operating in Greece are required to be licensed by the BoG, in cooperation with the ECB, in order to provide financing to a com- pany. Credit institutions, which may be established as • a Société Anonyme (SA) • a credit co-operatives of Law 1667/1986;
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