By Leonidas Stergiou
The four Greek systemic banks finance Greek shipping with $ 12.5 billion, according to Petrofin Research for 2021. The total lending of Greek shipping companies by all banks worldwide increased by 5.6% in 2021 and amounted to $ 52.58 billion from $ 49.79 billion in 2020 and $ 53.1 billion in 2019. 2021 was, in fact, the third year in the period 2008 – 2021 that total lending moved upwards (the other two years were in 2012 and 2014). International banks with offices in Greece recorded a limited increase of 3%, however reversing the 19% decline that had occurred in 2020.
The Eurobank Group has the largest loan portfolio to Greek shipping companies among the Greek banks that lend to the industry and the second largest in the world, according to the annual report of Petrofin Research, which records the evolution of Greek shipping lending for 21 years.
The data show that in 2021, Eurobank’s portfolio increased by 29.4% compared to 2020 or by 768 million dollars. It was the Greek bank that recorded the largest annual increase in loans to Greek shipping in 2021 compared to 2020 with the international body underlining in its report, the rise of Eurobank by 4 places in the overall ranking within a year.
The total shipping portfolio of the Eurobank group to Greek shipping companies amounted to $ 3.38 billion, which corresponds to approximately 6.43% of the total loan exposure of Greek shipping companies worldwide. In total, 56 banks are involved in lending to Greek shipping worldwide. In 2020, lending was $ 49.79 billion, which was the lowest level since 2006. The balances of loans only from Greek banks increased by 14.2% and amounted to 13.57 billion.
The lending of Greek banks to Greek shipping companies remains on an upward trajectory, without interruption since 2017. Among the banks that lend to the Greek shipping fleet worldwide, Greek banks were the only group of banks that despite the pandemic and global uncertainty continued increase funding. In fact, Greek banks also contributed to the relative increase in lending by European banks to Greek shipping companies compared to previous years. Greek banks recorded the highest increase in lending to Greek shipping companies, among the other banks examined in this index.
The increase of financing from Greek banks in Greek shipping is characterized as the most remarkable element in 2021, as they are among other things now able to further strengthen their position, with the consolidation of balance sheets by red loans. This, in combination with, among other things, the general recovery, the improvement of the country’s credit rating, the strong and healthy clientele they have in the sector pushed the Greek banks to be more competitive and to expand in this field.
Source: Capital

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