GREECE Law and Practice Contributed by: Panagiotis (Notis) Sardelas, Matina Kagkelari and Aris Sifakis, Sardelas Petsa Law Firm
Sardelas Petsa Law Firm 8 Papadiamantopoulou Str. 115 28 Athens Greece
Tel: +30 210 72 96 550 Fax: +30 210 72 96 549 Email: office@sardelaslaw.gr Web: www.sardelaslaw.gr
1. Private Credit Overview 1.1 Private Credit Market
tive investment funds (AIFs) in Greece may invest in transferable securities (such as bonds) but may not engage in loan origination activities. 1.2 Interaction With Public Markets Over the past six months, Greece’s public debt mar - kets have been active and well subscribed, reflecting strong investor demand and confidence in the coun - try’s investment-grade outlook. Large transactions, such as bond issuances by systemic banks, have demonstrated significant liquidity and competitive pricing. Additionally, several major Greek corporates have successfully accessed public markets through corporate bond issuances via public offerings on the Athens Exchange. Despite this activity, there is little evidence of Greek corporates refinancing private credit through public debt instruments. Greece does not have a fully devel - oped private credit market, and most corporate refi - nancing continues to occur via traditional bank lend - ing. 1.3 Acquisition Finance The overall M&A and private equity market in Greece has shown significant growth in the last 12 months, driven by improved macroeconomic stability and for - eign investor confidence. This increased activity has heightened the need for various financing sources. Traditional bank lending, however, often through syn - dicated loans, remains the dominant and preferred form of acquisition financing in Greece, particularly for larger, established companies. Private credit is primarily seen in specific scenarios such as start-up acquisition finance and smaller-scale transactions,
In recent years, alternative sources of funding have gained increasing relevance in Greece as a comple - mentary financing channel. The primary lending activ - ity, however, is still reserved for licensed credit institu - tions and credit companies supervised by the Bank of Greece (BoG) and the European Central Bank (ECB). As a result of the banking monopoly in lending, private credit financing usually takes the form of bond loan issuances, pursuant to Greek Law 4548/2018 (the “Company Law”). Furthermore, robust activity exists in the secondary market for the sale and servicing of loan portfolios, where specialised licensed servicers (credit servicing firms, E.DA.D.A.P) manage receivables on behalf of acquiring companies. Over the past 12 months, the broader credit envi - ronment in Greece has shown signs of improvement amidst a more favourable economic climate. There is growing demand for alternative financing solutions to complement the traditional banking system, which, despite significant improvements in asset quality (NPL reduction to around 3.6% by mid-2025), remains cau - tious regarding risk appetite. The implementation of Directive (EU) 2024/927 (AIFMD II) is expected to act as a key driver for fur - ther development of Greece’s private credit market, providing the necessary regulatory tools to support its growth, as under the existing legal framework alterna -
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