BUSINESS

Liquidity rises as firms repay their loans

By Evgenia Tzortzi

Liquidity in the Greek economy is showing signs of recovery, as a slow rise has been noted in the issue of loans for the first time after five years of contraction. Bank data point to a small increase in the flow of credit, mostly to enterprises, which are hoping to increase output thanks to the trend toward economic stability.

In contrast to the pessimistic picture painted by the latest data on the funding of the economy, which showed credit contracting by 3.7 percent at the end of April, bank officials explain that the non-recording of the small increase in liquidity is associated with the major loan repayments implemented in the first four months of the year. This mostly concerns major corporations such as Public Power Corporation, Hellenic Petroleum, Motor Oil and Intralot, which have used funds drawn from the market to repay loans.

Demand for loans is expected to grow further in the coming months on the back of expectations of economic expansion and an increase in tourism from abroad. Credit sector officials say that that the trend will become clearer in the fourth quarter of the year.

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