Greece is a democratic and developed country with an advanced high-income economy, strategically located at the crossroads of Europe, Asia, and Africa. Greece is a member of the European Union and of the Economic Monetary Union.
Greece has a service oriented ecomony, with important industries being tourism, food and tobacco processing, textiles, chemicals, metal products. In 2009, Greek ecemony suffered a severe financial crisis resulted from a combination of domestic and international factors.
Greek banking system consists of four domestic systemic banks, several regional cooperative banks and foreign-controlled banks.
Greece joined the Euro Area on 1 January 2001.
|Nominal GDP (2016)||Nominal GDP per Capita (2016)||Real GDP Growth (2016)|
|175.9 bln EUR (0.00%)||16 300 EUR (+0.01%)||0.0 % (2015: -0.2 %)|
According to Eurostat, nominal GDP of Greece in 2016 was 175.9 bln EUR.
Greece underperforms the European Union in terms of real GDP growth with the average annual differential coming to -0.8% over the past 10 years (2006 - 2016). In 2016 real GDP growth was 0.0% which was below the Euro Area average (1.8%) and below the European Union average (1.9%). Real GDP growth in 2017 - 2022 are IMF's estimates.
Chart 1. Real GDP Growth in Greece. Source: Eurostat, International Monetary Fund.
In 2016, nominal GDP per capita in Greece was 16 300 EUR.
Greece has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -27.5% over the past 10 years (2006 - 2016). GDP per capita at PPP in 2017 - 2022 are IMF's estimates.
Chart 2. GDP Per Capita at Purchasing Power Parity in Greece; European Union = 100.
|CPI, MoM (Sep 2017)||CPI, YoY (Sep 2017)||CPI, Year Average (2016)|
|1.2 % (Aug 2017: -0.3 %)||1.0 % (Aug 2017: 0.6 %)||0.0 % (2015: -1.1 %)|
According to Eurostat, inflation rate in Greece in 2016 expressed as annual percentages of average consumer prices was 0.0% which was below the Euro Area average (0.2%) and below the European Union average (0.3%). Inflation rates in 2017 - 2022 are IMF's estimates.
Chart 3. Inflation Rate in Greece. Source: Eurostat, International Monetary Fund.
|Unemployment Rate (2016)|
|23.6 % (2015: 24.9 %)|
|Government Bond Yield (Sep 2017)|
|5.56 % (Aug 2017: 5.55 %)|
Chart 4. Government bond yield of Greece. Source: Eurostat.
|CCC (substantial credit risk)||Caa3 (in default with little prospect for recovery), outlook stable|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Greece signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Greece and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 1 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Greece signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Greece and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):
Greece signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Greece has signed bilateral agreements with 58 jurisdictions to automatically receive information:
Greece has signed bilateral agreements with 69 jurisdictions to automatically send information:
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
|FATCA Status in Greece|
|IGA agreed on 30 November 2014, Model 1|
Greece agreed in substance to use FATCA on 30 November 2014 (Intergovernmental Agreement Model 1): the text of the IGA has not been released and financial institutions operating in Greece are allowed to register on the FATCA website consistent with the treatment of having an IGA in effect provided that Greece continues to demonstrate firm resolve to sign the IGA as soon as possible.
|Financial Market Development|
|2.5 (max 7.0), 133rd out of 138 countries|
|2.6 (max 7.0), 134th out of 138 countries|
According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Greece is scored 2.5 out of maximum 7.0 and ranked 133rd out of 138 analysed economies, trustworthiness and confidence of financial market is scored 2.7 (135th place).
Chart 5. Financial Market Development in Greece. Source: WEF.
Soundness of banks is scored 2.6 bringing Greece into the 134th place.
Chart 6. Soundness of Banks in Greece. Source: WEF.
|Maximum Protected Amount|
|100 000 EUR|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Greece are summarised in Table 1.
|Scheme Participants||all credit institutions operating in Greece, branches of non-EU banks, branches of Greek banks abroad|
|Scheme Exemptions||branches of EU-banks (covered by their home countries)|
|Eligible Depositors||natural persons, legal entities|
|Covered Accounts||all deposit accounts (for example, savings accounts, sight deposits, current accounts, time deposits)|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||EUR|
Table 1. Deposit guarantee scheme in Greece.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
|Local Currency (Euro)||Foreign Currency|
|Caa3 (in default with little prospect for recovery)||Caa3 (in default with little prospect for recovery)|
Local currency (Euro) deposit ceiling for Greece is set to Caa3 (in default with little prospect for recovery), foreign currency deposit ceiling is Caa3 (in default with little prospect for recovery).
|Average Deposit Rate (Aug 2017, EUR)|
|0.62 % (Jul 2017: 0.63 %)|
Chart 7. Deposit Rates in Greece. Source: ECB.
|Number of Banks|
|Consolidated Assets (2016)|
|301.48 bln EUR (-13.91%)|
|Recent Changes (2016)|
|new banks: 0, closed banks: 1|
Currently there are 45 credit institutions operating in Greece.
In 2016 consolidated banking assets in Greece were 301.48 bln EUR. The consolidated banking assets' evolution is shown at Chart 8 below.
Chart 8. Consolidated banking assets in Greece.
Recent structural changes (2013 - 2016) of the banking sector of Greece are summarised in Table 2.
|Number of Opened Banks||1||1||2||0|
|Number of Closed Banks||8||1||2||1|
Table 2. Recent structural changes in the banking sector of Greece.
The list of the most recently opened banks in Greece is provided in Table 3.
All the credit institutions operating in Greece can be classified into several categories. Table 4 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||21|
There are 22 branches of foreign banks from 15 different countries in Greece. Table 5 shows 10 countries having the biggest number of branches in Greece.
|Country of Origin||Number of Branches|
|Iran, Islamic Republic of||1|