GREECE Trends and Developments Contributed by: Panagiotis (Notis) Sardelas and Matina Kagkelari, Sardelas Petsa Law Firm
The FDI screening regime While many of the 2025–2026 reforms focus on streamlining processes, a crucial development that introduces new layers of complexity for cross-border private credit funds is the activation of the new for - eign direct investment (FDI) screening regime (Greek Law 5202/2025), operational since Q4 2025. This law requires mandatory notification and approval for investments in sensitive sectors (eg, defence, energy infrastructure, data centres) based on national secu - rity concerns. Private credit funds engaging in situations that might lead to “de facto control” or debt-for-equity swaps as part of a restructuring must now legally navigate this bureaucratic layer, introducing a new, critical risk point in the legal due diligence process for new deals. Conclusion The Greek private credit market in 2026 is navigating a critical inflection point. The convergence of powerful macroeconomic tailwinds with a comprehensive legal overhaul is transforming the market from one reliant on narrow, complex workarounds (such as bond loans exclusively for SAs) into a formalised, robust segment of the national financial ecosystem.
Overall, these interconnected reforms are creating a more robust, predictable and efficient legal ecosys - tem in Greece. While the AIFMD II transposition is undeniably the primary catalyst for the expansion of the activity of private credit, the concurrent national changes significantly enhance the quality of the envi - ronment in which these funds operate. The accelera - tion of justice, modernisation of collateral law and enhancement of capital market efficiency collectively reduce execution and enforcement risk for investors. While new compliance burdens such as the FDI screening regime introduce new layers of complex - ity and due diligence requirements, they ultimately foster a safer and more transparent environment. For sophisticated private credit investors, 2026 represents a unique window of opportunity to deploy capital into a market offering compelling yields and structural growth potential, backed by an increasingly sophisti - cated and EU-aligned legal framework.
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