GREECE
Macro/Political:
- Fitch Ratings affirmed Greece’s credit rating at BBB with a stable outlook. According to the agency, the rating reflects income per capita levels slightly above the BBB-category median, as well as a credible policy framework underpinned by EU and eurozone membership. Fiscal and macroeconomic adjustment has accelerated in recent years, strengthening economic fundamentals and policy credibility. According to the agency, these strengths are balanced against the legacy of the sovereign debt crisis, particularly the still very high, albeit steadily declining, debt burden, the significant loss of economic output, persistent external imbalances, and contingent liabilities stemming from the banking sector.
The agency stated that the rating could be downgraded if Greece fails to maintain the debt-to-GDP ratio on a declining path due to structural fiscal loosening or the materialisation of significant contingent liabilities, or if an adverse shock weakens Greece’s medium-term growth potential or worsens external imbalances.
Conversely, the rating could be upgraded if Greece continues to reduce its debt-to-GDP ratio through sustained substantial primary surpluses, resilient economic growth, and improvements in medium-term growth potential and economic performance driven by higher investment and the implementation of structural reforms.
Source: Fitch Ratings
- Ilias Kasidiaris, a jailed former member of parliament for the far-right Golden Dawn party, stated that he intends to form a new political party upon his release from prison. It is worth noting that Kasidiaris has filed multiple requests for conditional release in recent years. While some of his former associates have been released under strict conditions, Kasidiaris remains incarcerated amid ongoing legal debate surrounding his continued political activity from prison.
Source: Kathimerini
- The trade balance in March 2026 presented a deficit of EUR 2,210.6 mn compared to a deficit of EUR 3,180.8mn in March 2025, recording a drop of 30.5%. The total value of imports amounted to EUR 7,150.4mn (+0.2% y-o-y) while the total value of exports was EUR 4,939.8mn (+25% y-o-y). The deficit of the trade balance, for the 3-month period from January to March 2026 amounted to EUR 7,852.7 mn in comparison with EUR 8,460.2 mn for the corresponding period of the year 2026, recording a drop of 1.1%.
Source: ELSTAT
- Minister of Economy and Finance Mr Kyriakos Pierrakakis announced a supplementary budget of EUR 800mn, along with a draft law that will include the majority of the extraordinary and permanent support measure already unveiled by the government. Also, among other the most significant new measure announced by the minister during the 2nd Economic conference of Imerisia concerns the EUR 300 support payment for pensioners, as both the amount and the number of beneficiaries will be increased.
Source: Proto Thema
Markets:
- NBG’s profit after tax in 1Q26 stood at EUR 344mn compared to EUR 280mn in 4Q25(q-o-q) and EUR 381mn in 1Q25(y-o-y). The Bank’s NPE ratio remained stable at 2.4%. CAD and CET1 ratio (pro forma) stood at 21.1% and 17.4%.
The Bank’s CEO, Pavlos Mylonas, commented that the Greek economy entered 2026 supported by strong carry-over effects and solid fundamentals, remaining firmly on track for another year of growth outperformance relative to the euro area. He also noted that, in the face of renewed geopolitical uncertainty, Greece benefits from enhanced adaptability, supported by strong fiscal buffers and strengthened financial positions across the private sector.
Finally, he concluded that NBG’s solid performance in the first quarter of 2026 underscores the strength of both the Greek economy and the Bank’s balance sheet, setting the stage for the Bank to achieve its 2026 guidance.
Source: Athens Euronext
- OTE posted profits of EUR 153.6mn in 1Q26 compared to EUR 162.3mn in 1Q25(-5.4% y-o-y). Adjusted EBITDA margin stood at 338.4mn in 1Q26 compared to 329.1mn in 1Q25.
Source: Athens Euronext
CYPRUS
Macro/Political:
- Fitch Ratings affirmed Cyprus’s credit rating at A- with a positive outlook. According to the agency, the rating reflects income per capita levels above the A-category median, strong fiscal performance, and policy credibility supported by EU and eurozone membership. These strengths are, however, balanced by slightly weaker governance indicators compared with peers, vulnerabilities in external finances, and regional political tensions stemming from the division of the island.
Furthermore, the agency stated that the positive outlook is driven by continued debt deleveraging and favourable growth prospects, which are strengthening fiscal and external resilience.
Finally, the agency noted that a failure to reduce the debt-to-GDP ratio, due to significant fiscal loosening or weaker nominal growth, as well as an external shock affecting the medium-term prospects of key service sectors, could put downward pressure on the rating. Conversely, increased confidence in the sustained decline of the debt-to-GDP ratio, supported by substantial primary surpluses, could lead to an upgrade.
Source: Fitch Ratings
Markets:
- Bank of Cyprus profit after tax in 1Q26 stood at EUR 121 mn compared to EUR 128mn in 4Q25(q-o-q) and EUR 117mn in 1Q25(y-o-y). The Bank’s NPE ratio remained stable at 1.1%. Total Capital ratio and CET1 ratio (pro forma) stood at 25.5% and 20.7%.
The CEO of Bank of Cyprus commented that the bank started the year very strongly, performing above its mid-teens full-year target and supported by a strong capital base. He also added that, under the current geopolitical circumstances, the bank is well equipped to navigate this period.
Source: Athens Euronext
