Cash abundance for economy

The Greek credit sector has received a cheap liquidity boost this year of 40 billion euros from the European Central Bank that has flooded the market with cash aimed at supporting enterprises and households in the face of the pandemic.

The negative-interest funding by the Eurosystem and the increase in deposits, which has come to €14.5 billion since the start of the year, constitute the main weapons of banks and corporations in the liquidity battle against the economic recession.

The key instrument in the battle against the pandemic's impact have been the programs of the Hellenic Development Bank - the Entrepreneurship Fund II and the Guarantee Fund - through which loans of €5.3 billion have been issued. Another €3.3 billion should be disbursed by early 2021.

Thanks to these instruments, local banks have so far issued €17 billion to date in 2020, recording a...