Record year set for 2020 with new loans seen above 15 bln euros

According to the Bank of Greece data, the net flow of business financing amounted to 1.86 billion euros in March, compared with a positive net flow of 462 million euros in February, with the annual rate of change increasing to 3.6 percent from 1.4 percent. Businesses in a healthy financial position and with a good credit profile rushed to boost their liquidity, by drawing liquidity from lenders. Additionally, banks have extended loan limits to healthy businesses to shield them from the effects of the crisis.

Unprecedented moves shield banks from pandemic

The European Central Bank has fully shielded the banking system in terms of liquidity, bad loans, and capital adequacy, while the European Commission has suspended several regulations to prevent any additional state aid measures from having an impact on shareholders, bondholders, and depositors. Greek bank shares, despite yesterday's gains of 17.84 percent, may have plummeted 60 percent since the beginning of the year, but the current crisis for Greek lenders is very different from what we have experienced in recent years.