Greek Finance Minister Kyriakos Pierrakakis has issued a pointed challenge to banks and non-performing loan servicers at the Hellenic Bank Association's general assembly, calling for concrete pathways to reintegrate millions of Greeks whose debts have left them effectively shut out of the economy.
"Millions of people and their assets currently sit with servicers and, in practice, outside economic activity," Mr. Pierrakakis said. "People who cannot borrow, properties that cannot be utilized, small businesses that cannot restart.
A part of our economy has been suspended for years."
Building on recent private debt measures — including a 72-installment settlement scheme, easier removal of account seizures, an improved out-of-court settlement mechanism and caps on consumer loan interest rates — Mr. Pierrakakis called for solutions built on three pillars: the state, which regulates and coordinates; banks, which must offer borrowers who honor restructured debts a genuine path back into the banking system, including refinancing access and market-rate second chances; and servicers, who he said must provide sustainable settlements and transparency, since "they manage not just portfolios, but lives."
Mr. Pierrakakis also highlighted Greece's loan-to-deposit ratio, noting Greek banks currently lend about 70 euros for every 100 euros in deposits, compared to nearly 100 across the eurozone, calling it "not a criticism, but a measure of opportunity" for future growth.
On banking sector consolidation, amid speculation over potential interest from major European banking groups in Greek lenders, Mr. Pierrakakis said Greece must pursue growth, expansion into Southeastern Europe, the Eastern Mediterranean and North Africa, and continued deep roots in the domestic market, describing it as "the model of the strong regional bank that Europe needs."