Greek banks leaders in maritime financing

Greek banks will surpass foreign banks in shipping financing, Ted Petropoulos, head of Petrofin Research, estimated in an interview with “Naftemporiki”.

“Greece’s financing sector is entering a new phase, where the banking demand for loans and the competition will become more intense, especially for top class customers,” he added.

Despite the above, however, Greek banks remain fully committed to shipping financing and are expected to surpass foreign ones in 2024.

According to Petrofin, a key feature of 2023 was increased sale and leaseback (SLB) deal traffic, as well as greater interest in shipping lending from investment funds.

Such providers usually offer competitive rates and often a higher LTV, as well as longer repayment times, which Greek shipowners found attractive.

Sale and leasebacks (SLBs) were mainly recorded among listed companies or even large shipowners, who were looking for an opportunity to release capital where needed or to finance new acquisitions or newbuildings using less of their own capital.

The exception to the rule was the Greek banks, which managed to grow, despite competition from the sale and leaseback (SLB) activity, reaching $15.8 billion in 2023, compared to $14.08 billion in 2022.

The advantage of Greek banks lies in their long-term close relationships with Greek clients – shipowners, as well as the benefits they derive from ancillary services.

Furthermore, as the creditworthiness of Greece and its banks improved, lending margins became more competitive and Greek banks saw a significant increase in their deposits from shipping customers.

Without increasing total LTV loans, Greek banks were able to grow by 12.25% in 2023 and show the highest level of uncommitted facilities at 60.83% at the end of the year. Since 2016, in fact, the loans of Greek banks have almost doubled.

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