Business lending recorded a rally in 2025, with banks expecting double-digit growth percentages for 2026, despite the anticipated slowdown reflected in the decline of average monthly financing flows (new loans minus repayments) in the ten-month period of January-October 2025. As the Bank of Greece notes in its Interim Monetary Policy Report, the rise in economic activity and the reduction in bank lending rates contributed to maintaining high growth rates for business loans in 2025, while the projected GDP growth combined with lower interest rate levels on bank loans compared to immediately preceding years will continue to support bank credit provision to businesses in 2026.
How the annual growth rate of bank loans to businesses developed
As the data shows, the annual growth rate of bank loans to businesses in the ten-month period of January-October 2025 accelerated and averaged 16%, compared to an average value of 8.5% in the corresponding ten-month period of 2024. However, during the same period, the average monthly net flow of bank financing decreased to €438 million, from €557 million. Similarly, the average monthly gross flow of fixed-term bank loans to non-financial corporations during January-October 2025 decreased to €1.5 billion, from €2 billion in the ten-month period of 2024. Loans to large enterprises, which represented 2/3 of this gross flow (€1 billion), recorded an annual decrease of 32.3%. On the other hand, the gross flow of loans to small and medium enterprises (€502 million) increased by 11.2%. As for the average monthly balance of bank financing without fixed duration (i.e., credit lines and other facilities), it increased by 15.0% or €1.4 billion in the ten-month period of 2025 compared to the corresponding period of 2024. The provision of loans from banks to businesses was significantly supported again this year by co-financing and guarantee programs of the EIB Group, as well as those of the Hellenic Development Bank. Bank co-financing loans under the Recovery and Resilience Facility (RRF) also contributed in the same direction, with disbursements showing a slight increase in the first ten months of 2025 compared to the corresponding period of 2024.
Regarding the absorption of RRF resources, Greece has so far made satisfactory progress. It has received a total of €23.4 billion, of which €12 billion in grants (66% of total grants) and €11.4 billion in loans (64% of total loans).
Published in MoneyPro of Parapolitika
