GREECE Trends and Developments Contributed by: Ioannis Charalampopoulos, Daphne Kasimati, Afroditi Kazani and Ioanna Exarchou, Machas & Partners
Revitalising Greece’s Banking and Finance Ecosystem Market trends The Greek banking and finance sector continues its robust performance in 2025, building on the solid foundation established in previous years and sup- ported by a positive macroeconomic landscape. On 14 March 2025, Moody’s upgraded Greece to Baa3 (investment grade), completing the restoration of investment grade status across all major agencies. This comprehensive upgrade strengthened interna- tional investor confidence and positioned Greece for an even broader investment base and continued access to lower financing costs. At the same time, the Greek economy is projected to grow by about 2.3% in 2025 (with forecasts in the 2.1–2.3% range), materially above the euro area average. This sus- tained growth trajectory reflects the sector’s success- ful transformation following the challenging decade from the 2009 fiscal crisis through recent heightened geopolitical tensions, mounting trade protectionism and inflationary pressures. The banking system has further enhanced its resilience, underpinned by bal- ance sheet strengthening, with asset quality in sys- temically important banks continuing to improve, as evidenced by a drop in the non-performing loan ratio of around 3-4%. The completion of the merger between Attica Bank and Pancreta Bank in September 2024 represented the final major structural adjustment in the Greek banking system, creating Greece’s fifth banking pil- lar. The merged entity achieved improved asset quality following its participation in the final months of the Hercules scheme (HAPS III). At the same time, the privatisation of the four systemic banks through the divestments of the Hellenic Financial Stability Fund (notably disposals in 2023–October 2024, including the 10% NBG sale) has reduced state involvement and enhanced market credibility. Another milestone was the recent increase of UniCredit’s equity stake in Alpha Bank to 26% (as of 28 August 2025), underscor- ing the importance of cross-border cooperation as a stabilising force in an environment shaped by geopo- litical uncertainty, while also bolstering international confidence in the Greek economy.
The digitalisation momentum continues to accelerate in 2025, with traditional banks increasingly investing in digital services, such as mobile banking apps, digi- tal wallets, and online lending platforms, as part of a broader European trend toward modernised financial services. The official launch of Snappi, Piraeus Bank’s fully digital banking venture, represents a significant milestone in Greece’s neobanking evolution, offering comprehensive digital banking services and micro- credit solutions to compete with established players like Revolut while serving both retail clients and SMEs. This digital transformation is positioning Greek banks to compete more effectively in the evolving European financial services landscape. Recovery and Resilience Facility (RRF) The RRF has become a cornerstone of Greece’s lend- ing market in the context of the ongoing implementa- tion of the “Greece 2.0” National Recovery and Resil- ience Plan. After the Council approved Greece’s plan on 13 July 2021, a comprehensive revision was con- ducted to incorporate a REPowerEU chapter, which the Council adopted on 8 December 2023. Greece’s plan was subsequently updated on 16 July 2024, and again on 21 January 2025. The total value of the Plan amounts to EUR35.95 bil- lion (comprising EUR18.22 billion of RRF grants and EUR17.73 billion of RRF loans) and is expected to mobilise over EUR60 billion of total investment in the country by the end of 2026, when all projects should have been implemented. The Plan is structured around five strategic pillars: • green transition; • digital transformation; • employment, skills & social cohesion; • private investment & economic transformation; and • institutional transformation of the state. The five-pillar Greek plan addresses the country’s spe- cific challenges and also contributes to EU priorities such as the green transition and digital transformation, allocating 38.2% and 21.6% to the respective targets. The Recovery and Resilience Facility – Greece 2.0 supports the financing of private investments, pri-
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