Defense Becomes the “RRF Plus”: Banks and Greek Companies Enter a New Credit Expansion Arena

With the EU Recovery and Resilience Facility (RRF) nearing completion, Greek banks and businesses are preparing for a historic shift in credit expansion—from the traditional European development engine to financing defense and strategic technology sectors. Within banking circles, defense is increasingly described as the new “RRF plus.”

Official data show that Greece has received €23.4 billion from the RRF, representing 65% of its total €36 billion allocation, with 532 loan agreements worth €17.6 billion signed, including bank loans, RRF loans, and private investment. Despite this successful absorption, by 2026 roughly 75% of the available funds will be utilized, raising a key question: what will replace the RRF as the driver of credit expansion?

The answer lies in Europe’s strategic defense pivot. Programs such as ReArm Europe Readiness 2030, SAFE, the European Defence Fund (EDF), and EDIP create a financing horizon almost double that of the RRF, with total resources exceeding €950 billion over the next five years. The EU has also activated a special fiscal escape clause, allowing increased military spending without breaching budgetary rules.

For Greek banks, this translates into new revenue streams and strategic opportunities:

• Direct financing of Greek defense, shipping, and tech companies.
• Participation in large European syndicated loans backed by EU guarantees.
• Leveraging SAFE, EDF, and EDIP funds for projects of strategic national importance.

Shipping and advanced technology are emerging as the primary beneficiaries. With 111,000 global clients, Greek shipping and equipment suppliers are entering the center of European defense programs. Simultaneously, Greek tech firms are well-positioned for financing through bank-led or syndicated structures, strengthening the domestic industrial base.

The strategic impact is twofold:

1. Banks ensure continued credit expansion and stable revenues.
2. Greece strengthens its role in the European defense industry, creating a long-term growth model.

Industry analysis projects a 30%-40% increase in financing for strategic sectors, with notable effects on technology imports, high-skill job creation, and tech services exports.

As the RRF cycle winds down, defense emerges as the new engine of growth. Greek banks are ready to seize the opportunities, creating a fresh credit expansion cycle and reinforcing Greece’s technological and industrial presence in Europe.

Source: pagenews.gr