De-escalation in the Middle East could boost growth, ease inflationary pressures and improve Greece’s economic prospects, according to the Bank of Greece’s Monetary Policy Report. However, geopolitical risks, demographic decline and the post-Recovery Fund era remain significant challenges.
Greece continues to outperform the eurozone, yet the Bank of Greece warns of inflation, labor pressures, and global vulnerabilities
Government, banks, and servicers seek urgent solutions as securitization plans fall behind targets and market risks mount
Overall, the monthly net flow of total deposits in the Greek banking system was positive in March, reaching 1.359 billion euros.
Regarding the European Central Bank’s next moves on interest rates, he indicated that he does not foresee significant changes in monetary policy for the time being
During the meeting, the General Council approved the bank’s audited annual accounts for the financial year ending December 31, 2024. They also decided to propose to the General Meeting of Shareholders the distribution of a statutory dividend of 0.6720 euros per share, the same as last year, totaling 13.3 million euros. Additionally, they recommended transferring 69.6 million euros to the Greek state from profits.
According to the BoG report, inflation, measured by the Harmonized Index of Consumer Prices (HICP), is expected to decrease gradually, approaching 2% by the end of 2026. However, introducing the ETS2 carbon trading system in the energy sector is anticipated to cause a temporary increase to 2.5% in 2027. Core inflation is projected to drop to 2.2% by 2027, driven by lower industrial goods and services inflation.
By the end of 2026, inflation is expected to converge towards the 2% threshold, but will remain slightly above it. However, an increase to 2.5% is expected in 2027. Core inflation is expected to drop in 2024, reaching 2.2% in 2027, mainly reflecting the decline in non-energy industrial goods inflation and to a lesser extent services inflation.
According to the Bank of Greece data, business deposits fell sharply by €2.122 billion in October 2024, while household deposits also declined, albeit more modestly, by €136 million.
Be alert regarding unusual behavior or situations (e.g., “too-good-to-be-true” offers, urgent requests for money, suspicious activity on your bank account or card).
In March 2024, the monthly net flow of credit to the general government was negative by 469 million euros
If the Bank of Greece did not operate under the protection of the institutional framework of independence, after what happened in 2015
The rating agencies are keeping the banks at a distance from the rating of the State. The ECB's approval of a dividend distribution this summer, after 16 years, will pave the way for upgrades.
Stournaras emphasized the modernization of the Bank of Greece's Central Vault, which now boasts cutting-edge sorting, inventory management, and security systems
Βασικό εργαλείο για την θεραπεία των μη εξυπηρετούμενων ανοιγμάτων ο εξωδικαστικός μηχανισμός
The governors of the national central banks of the eurozone and the six members of ECB's executive committee will convene at the Bank of Greece's headquarters to decide on monetary policy.
Bloomberg reported that Bank of Greece Governor Yannis Stournaras is “quite optimistic” that his country will regain investment-grade status soon after its new government lays out its plans.
