Greek Minister of National Economy and Finance Kyriakos Pierrakakis has called on the country’s banking sector to significantly expand financing for small and medium-sized enterprises (SMEs), productive investments and innovation, arguing that the banking system is now strong enough to support faster economic growth.
The minister also confirmed that permanent tax cuts will be a central pillar of Prime Minister Kyriakos Mitsotakis’announcements at the Thessaloniki International Fair (TIF) later this year.
“There is still significant room for more financing”
Pierrakakis noted that Greece has dramatically reduced its non-performing loans—from 43.6% in 2019 to just 3.3% today—creating the conditions for banks to play a more active role in supporting businesses.
“For every €100 in deposits, Greek banks currently lend approximately €62. This shows there is still considerable room to provide more liquidity to the real economy,” he said.
According to the minister, stronger lending to SMEs, innovative companies and productive sectors is essential for sustaining long-term economic growth.
Returning the “growth dividend”
Pierrakakis stressed that any additional fiscal space generated by stronger economic performance will primarily be used for permanent tax relief rather than one-off subsidies.
“A strong economy makes social policy possible, and economic growth only has real meaning when its benefits are returned to society,” he said.
The government believes that continued debt reduction and restored fiscal credibility now allow Greece to gradually return the benefits of growth to households and businesses.
Housing and productivity reforms
Addressing Greece’s housing affordability challenge, the minister highlighted a broad package of measures including the “My Home” housing programme, annual rent reimbursement, tax incentives to bring vacant properties back onto the market, regulation of short-term rentals and the utilization of state-owned real estate.
Pierrakakis also described productivity growth as Greece’s most important structural reform for the coming decade, linking it to higher wages, increased investment, stronger exports and greater technological innovation.
First-home protection platform launches September 21
The minister announced that Greece’s new first-home protection platform will become operational on September 21, offering borrowers a comprehensive framework for debt restructuring while safeguarding primary residences.
He emphasized that the initiative is designed to provide a genuine second chance for households struggling with accumulated debt.
Looking ahead to TIF
Pierrakakis’ economic message outlines the government’s priorities ahead of the Thessaloniki International Fair: expanding bank lending to the productive economy, delivering permanent tax reductions, boosting productivity and supporting sustainable growth.
The government’s strategy aims to translate Greece’s improving fiscal performance into higher disposable income, stronger investment and long-term economic resilience.
Source: pagenews.gr