BUSINESS

Banks set to increase issue of loans to more than 10 bln euros

YIANNIS PAPADOYIANNIS

TAGS: Banking, Economy

Banks are planning for new loan issues adding up to over 10 billion euros within the year, mainly to enterprises, provided of course that estimates for an improvement in the economic environment are confirmed.

After an extended period of uncertainty, senior bank officials feel more optimistic following the completion of the second bailout review. They say that restoring confidence is essential for the restart of loan issues and the sector in general, as it will allow enterprises to take new investment initiatives and apply for loans. At the moment, they add, demand for credit remains particularly low due to the prolonged uncertainty throughout the first half of the year.

Banks attribute particular significance to strengthening entrepreneurship in competitive sectors that have an eye on foreign markets – such as the domains of industry, manufacturing, energy and tourism – and in major infrastructures such as highways, wind parks, waste management, etc.

In 2016, the disbursement of new loans came to 8 billion euros, after amounting to just 6 billion euros the year before. Despite the uptick expected in 2017, this year will continue to record a credit contraction, bankers say.

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