GREECE
Macro/Political:
- The Greek PDMA announced that during the 52W T-Bills auction of EUR 400mn which took place yesterday, the total bids reached EUR 1bn and the amount finally accepted was EUR 500mn at a uniform yield of 2.41% (vs 1.97% in the previous 52W T-Bills auction in March 2026).
Source: PDMA
- The OECD, in its latest Economic Outlook, noted that Greece’s GDP growth is projected at 1.9% in 2026 and 2.0% in 2027, supported by disbursements from the Recovery and Resilience Fund, which are expected to boost investment. In addition, employment gains, personal income tax cuts, and energy support measures are projected to support private consumption. Headline inflation is expected to rise to 4.2% in 2026, driven by higher energy prices, before easing to 2.7% in 2027. Finally, the OECD expects General Government Debt (Maastricht definition) to decline to 135.8% of GDP in 2026 and further to 129.8% of GDP in 2027.
Source: OECD
- The European Commission, in its Semester Spring package, noted that Greece is no longer assessed as experiencing macroeconomic imbalances. According to the Commission, vulnerabilities related to government and external debt have receded in recent years, supported by steady GDP growth and sustained budgetary surpluses, which have contributed to a further reduction in public debt. In addition, NPLs in the banking sector have declined significantly, leading to stronger bank balance sheets. While the current account deficit remains sizeable, its favourable financing structure helps mitigate external sustainability risks. Finally, the Commission highlighted that Greece has implemented important reforms aimed at reducing its long-standing economic vulnerabilities.
Source: European Commission
- According to statistical research published by Hellenic Statistical Authority on the evolution of bilateral trade in goods between Greece and the UK during 2005–2025, significant changes were observed before and after Brexit. During the Brexit implementation and post-Brexit period (2019–2025), Greece maintained a consistently positive trade balance in goods with the UK, exhibiting an overall upward trend. In contrast, during 2005–2018, the bilateral trade balance remained in deficit for Greece. Furthermore, Greek exports to the UK increased significantly in value during 2021–2025, while imports from the UK were comparatively lower during the same period. Compared with the 2005–2020 period, a notable change occurred in the UK’s position among the principal countries of origin of imports to Greece. However, no significant changes were observed in the composition of the main imported product categories. Overall, the findings suggest that Greece’s bilateral trade in goods with the UK improved following Brexit. Specifically, whereas Greece recorded trade deficits in goods with the UK during 2005–2018, the trade balance turned into a sustained surplus from 2019 onwards.
Source: ELSTAT
Markets
- S&P Global Ratings upgraded the long-term credit rating of Hellenic Telecommunications Organization (OTE) to A-. According to the rating agency, the upgrade reflects the recent rating improvement of OTE’s parent company, Deutsche Telekom, the strengthening of Greece’s sovereign credit rating, and a more favourable assessment of OTE’s standalone credit profile.
S&P believes that OTE’s standalone creditworthiness has improved and that the company will be able to sustain its strong credit profile over 2026–2028. This assessment is supported by the agency’s expectation of low adjusted leverage of approximately 0.5x and robust free operating cash flow (FOCF) generation. Furthermore, S&P expects OTE to maintain its leading market position as Greece’s largest telecommunications operator, with strong positions in fixed broadband, mobile telecommunications, and pay-TV services.
The stable outlook reflects the agency’s view that, over the next 24 months, OTE will continue to benefit from its leading positions in the domestic mobile and fixed broadband markets, achieve moderate organic growth, and maintain EBITDA margins above 40%, while generating substantial FOCF. As a result, adjusted debt-to-EBITDA is expected to remain comfortably below 1.0x, and the FOCF-to-debt ratio is projected to stay well above 40%.
The rating could come under downward pressure if OTE’s adjusted leverage were to increase to 1.5x or higher and its FOCF-to-debt ratio were to fall below 40% on a standalone basis. A downgrade could also result from a downgrade of Deutsche Telekom or from a reduction in Greece’s sovereign credit rating by more than one notch.
Conversely, an upgrade could occur if OTE’s standalone credit quality improves materially, if its parent company receives a further rating upgrade, and if the agency’s assessment of the economic environment in Greece remains robust or strengthens further.
Source: S&P
- Piraeus Bank will announce financial results on Friday 30/10/2026.
Source: Athens Euronext
- Eurobank will announce financial results on Friday 30/07/2026.
Source: Athens Euronext
CYPRUS
Macro/Political:
- The Central Committee of AKEL has unanimously endorsed the party’s General Secretary, Stefanos Stefanou, as its candidate for the presidency of the House of Representatives. Following a plenary session yesterday, the committee confirmed that Stefanou’s candidacy has already secured the backing of ALMA.
Democratic Rally leader Annita Demetriou is the second candidate in the race for the House presidency. Meanwhile, Democratic Party (DIKO) President Nikolas Papadopoulos is expected to decide today whether he will also run for the position.
According to Phileleftheros, Direct Democracy leader Phidias Panayiotou visited the Democratic Party’s offices yesterday. If Papadopoulos secures the support of both Direct Democracy and ELAM, he is expected to advance to the second round, leaving Demetriou behind.
ELAM is widely expected to support Papadopoulos’ candidacy. As a result, the outcome may largely depend on the decision of Direct Democracy, which is expected to announce its position today at 2 p.m.
Source: PhileNews
