Greek Government Plans to Reduce Bank Fees

ATHENS (Reuters) – The Greek government is developing a plan to reduce bank fees and charges for retail transactions. This initiative aims to assist households in managing the high cost of living, as stated by the country's finance minister on Wednesday.

Greek lenders are on a recovery path following three rounds of recapitalisations totaling 45 billion euros and a nationalisation effort after the financial crisis that affected the nation in the previous decade.

> "With the government's planned interventions, bank fees will be considerably lower from 2025," said Kostis Hatzidakis, referencing daily transactions conducted at ATMs and via e-banking.

Hatzidakis, who addressed Greek lawmakers regarding the 2025 state budget, mentioned that further details about the government's plans will be revealed on Sunday.

The four major Greek banks have successfully lowered their non-performing loan ratio to below 6%, down from 45% in 2017, and reported profits of 3.8 billion euros ($4.00 billion) in 2023. They are poised to distribute dividends from this year's profits for the first time in 16 years.

Currently, only 10% of these banks’ annual fees—totaling 1.8 billion euros last year—are derived from retail transactions. Analysts estimate that a potential reduction of charges by 50% would cost banks approximately 80-100 million euros each year.

Despite the rebound of Greece's economy post-debt crisis, salaries still trail the European average. Additionally, the per capita gross domestic product remains among the lowest in the European Union, while the prices of goods have surged dramatically.

> ($1 = 0.9494 euros)