Government Urges Banks to Boost Funding for Small Businesses

On Monday, the government encouraged banks to increase their lending, particularly to small businesses and households, while also positioning itself to reclaim a stronger role in the economy, reminiscent of their status before the 2010 crisis.

This statement was made during the annual meeting of the Hellenic Banks Association by Minister of National Economy, Kyriakos Pierrakakis.

He highlighted the need for banks to restore their former stature, noting that, although they have made progress in recovering from past challenges, they still have a long way to go to reach the levels of influence and importance they held before 2007. “We all remember well how significantly banks contributed to financing both state and private investments, not just in Greece but across many neighboring countries. However, banks have voiced concerns about their support for small and medium-sized enterprises,” he explained.

The Minister acknowledged that there are legitimate complaints from society. Many experts, business owners, and everyday citizens feel that banks are not meeting their expectations in daily life.

In light of this, he urged banks to play a role in improving the convergence of the Greek economy, stating that the average in the eurozone shows levels of investment, growth, and income that Greece has yet to achieve.

According to Pierrakakis, the banking system now possesses the capability to fulfill the demand for increased funding for the economy.

He asserted that current banks have the potential to return to their optimal form seen before 2007. They can exhibit both regional dynamism and influence within the Greek market. He emphasized the importance of the banking system moving past its current limitations to reach its full potential.