The result of the elections was a vote of confidence in the government and we believe that the next elections will lead to a stable government, something that the country needs for the coming years, noted Christos Megalou, CEO of Piraeus Bank in an interview he gave earlier to Bloomberg TV in London.
As the bank states in its announcement, Mr. Megalou added that it is a government that has so far implemented a series of policies that have significantly increased the growth rate of the economy, exports and Foreign Direct Investments.
“Our estimate is that in 2023 Greece will grow at a rate of around 3.5%, which we estimate is twice the European average, and we see a stable growth for the next few years at the limit of 3%. This will be supported by more Foreign Direct Investment, further fixed capital formation and a big boost to exports, the growth of which has been significant in recent years.”
Disinvestment of the HFSF
To a question about the disinvestment of the Hellenic Financial Stability Fund by Greek banks, the managing director of Piraeus Bank replied that there is a policy that requires this to happen by 2025, and that the HFSF is working towards this goal. Among other things, Mr. Megalou mentioned that Piraeus Bank will have managed to significantly reduce non-performing loans from 54% to 5% “and we are determined and focused on reaching the European average soon.
Net interest margin
Mr. Megalou estimated that “on the one hand we have the net interest margin increasing and on the other, depositors will demand a higher return for their money and this is something we are working on. We believe the net interest margin will be around 2.3%-2.4%, which is a very good margin for a European bank. Greece in April recorded inflation of 3% for the year, which is a remarkable figure. Nevertheless, we expect the ECB to raise interest rates towards the 3.75% mark, but we still do not believe this will significantly impact our portfolios. We remain vigilant and ready to help our customers if needed.”
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