As the Bank of Greece reports, the credit standards for loans to non-financial corporations (NFCs) remained unchanged in the first quarter of 2023. The terms and conditions remained also unchanged, while the overall demand for corporate loans decreased somewhat.
The credit standards for loans to households remained unchanged in the first quarter of 2023, whilst the terms and conditions for loans to households eased to some extent. The demand for housing loans decreased somewhat but remained almost unchanged for consumer credit.
Loans to non-financial corporations
In the first quarter of 2023, the credit standards for loans to non-financial corporations (NFCs) remained unchanged compared with the fourth quarter of 2022, in line with the expectations expressed in the previous quarterly survey round. Moreover, banks expect that credit standards will also remain unchanged during the second quarter of 2023.
The overall terms and conditions for loans to NFCs remained unchanged compared with the fourth quarter of 2022.
During the first quarter of 2023, the overall demand for loans and especially for short-term loans decreased to a small extent, driven mainly by the higher level of lending interest rates. During the next quarter, the overall demand for loans, especially for small and medium-sized enterprises, is expected to decrease further.
In the first quarter of 2023, the ratio of rejected applications for loans to NFCs remained unchanged compared with the previous quarter.
Loans to households
In the first quarter of 2023, the credit standards for loans to households remained unchanged compared with the fourth quarter of 2022, in line with the expectations expressed in the previous quarterly survey round. The terms and conditions for loans to households eased somewhat compared to the fourth quarter of 2022, mainly due to lower non-interest rate charges.
The demand for housing loans decreased to a small extent, driven mainly by the higher level of lending interest rates and the reduced consumer confidence. The demand for consumer credit remained almost unchanged (see Chart 2). During the next quarter, the overall demand for housing and consumer loans is expected to remain almost unchanged.
Banks expect that, during the second quarter of 2023, credit standards for housing and consumer loans will remain almost unchanged.
The ratio of rejected applications for loans to households decreased somewhat during the first quarter of 2023 compared with the previous quarter.
Latest News
OECD: Greek Economy Resilient with 2% Growth Forecast for 2024
However, the OECD highlights challenges including the need to enhance productivity and fiscal adjustment due to high debt levels.
Challenges and Delays in Greece’s Hydrocarbon Exploration
Sources disclose that the petroleum companies holding the concessions are seeking partners to jointly invest and share the costs of exploration and drilling.
Greek Beach Visitors Can Report Violations on New ‘MyCoast’ App
Greek authorities hope the newly-launched, free ‘MyCoast’ app will help clamp down on public beach violations
BoG Figures Confirm Banner Year for Greek Tourism in 2023
20.6 billion euros in related revenues topped the previous year’s figure by 16.5%
Piraeus Bank to Propose First Dividend in 16 Years
Piraeus Bank has forecast profits of roughly 900 million euros this year, rising to one billion euros next year
Eurostat: Inflation in Greece Eases to 3.2% in April; 2.4% in Eurozone
The rate of increase for food prices was up by 4.9% in April 2024, compared to 4.8% in the previous month
ELSTAT Feb. Retail Turnover Drops by 3.8%, Sales Volume Plummets by 9.8%
Additionally, the seasonally adjusted General Volume Index for Feb. 2024 experienced a 3.8% decrease compared to the previous month of the same year
Greek Buyers Lead Return to Vacation Home Market
In the last six months, Greeks have made a surge into the vacation home market, notably without relying on loans
NBG Receives BBB Investment Grade by DBRS
This makes NBG the first Greek bank to regain Investment grade status, nearly 15 years after the onset of the Greek financial crisis
Greek Gov. Budget: Primary Surplus 3bln in Q1 2024
Value Added Tax (VAT) revenues reached 5.876 billion euros, down by 16 million euros compared to the target