GREECE Trends and Developments Contributed by: Ioannis Charalampopoulos, Daphne Kasimati, Afroditi Kazani and Ioanna Exarchou, Machas & Partners
non-EU banks. It also extends to other financial insti- tutions such as payment and e-money institutions, microfinance providers, leasing, factoring and credit companies, where the requirements are applied on a proportional basis. The Act’s key purpose is: • reinforcing the role of boards and independent non-executive members, clarifies the composition of the required committees and the responsibilities of the key functions of the institutions (ie internal audit, compliance and risk management); • promoting the development of a robust internal control framework; and • compelling the implementation of stricter policies on risk management, compliance, conflicts of inter- est, codes of conduct and whistleblowing. Significant institutions must adapt their frameworks by 1 October 2025, while less significant institutions have until 1 January 2026 to meet the board composi- tion requirements, particularly regarding the minimum number of independent non-executive members. Corporate Sustainability Reporting and ESG Disclosure Framework Another important development is the transposition of the EU Corporate Sustainability Reporting Directive (CSRD) into Greek law through Law 5164/2024. The said Law, introduces a new, harmonised framework for ESG reporting, requiring financial institutions in Greece to disclose their environmental impacts, social policies and governance practices. Reporting follows the “double materiality” principle, obliging entities to assess both how sustainability issues affect their busi- ness and how their activities impact society and the environment.
The Ministry of Development has also issued guidance aligning national practice with Commission Delegated Regulation (EU) 2023/2772 on ESRS, further clarifying the standards to be applied by obliged entities. This integrated regime is expected to enhance transpar- ency and comparability across markets, strengthen investor confidence and accelerate the integration of sustainability considerations into financial decision- making in Greece. Conclusion The developments in Greece’s banking and finance landscape through 2025 reflect a comprehensive transformation towards modernisation, digitalisation, and enhanced competitiveness. With the progress of the recovery and resilience plan, EU-funded invest- ments are expected to be significant in 2025 and 2026, and together with sustained robust consump- tion, supported by steady income growth, these are expected to be the main drivers of economic growth. The completion of Greece’s investment grade res- toration from all major rating agencies positions the country for continued access to favourable financing conditions and broader investor participation. The blend of traditional banking practices with innovative financial solutions, the evolution of credit companies and servicers, and the comprehensive digital infra- structure initiatives position Greece’s financial eco- system to support sustainable economic growth in the years ahead. As the country approaches the conclusion of the RRF programme by August 2026, the successful imple- mentation of structural reforms and the establishment of a resilient, modernised financial sector will be cru- cial for maintaining Greece’s economic momentum.
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