The pressure on the Greek government over the Tempe train crash tragedy is expected to peak

Macro/Political
• The pressure on the Greek government over the Tempe train crash tragedy is expected to peak tomorrow as public outrage continues to grow. A large-scale protest is set to take place across the country, similar to the massive demonstration that took place in Tempe two years ago. Meanwhile, the government appears to be shifting its stance, trying to maintain a low profile and avoiding statements that could further escalate
tensions.

• In November 2024, the number of issued building permits in Greece amounted to 2,649 (+6.4%, y-o-y). During the period January-November 2024, Total Building Activity (private public) in Greece recorded a 14.9% increase in the number of issued building permits compared to the corresponding period of 2023.
Source: ELSTAT

Markets

• OTE FY24 net profit stood at EUR 478.8 mn, reflecting a decrease of approximately 9.9% (y-o-y).
Source: athexgroup.gr

• Fitch affirmed Public Power Corporation S.A.’s (PPC) Long-Term Issuer Default Rating (IDR) and senior unsecured rating at ‘BB-‘. According to the Agency the affirmation reflects PPC’s gradual shift to a more balanced integrated model of generation and supply, increased low-cost renewables production, the highly flexible nature of its hydro and thermal capacity, expanding regulated distribution, and the unwinding of state receivables. It also factors in Fitch’s expectation of consistently negative free cash flow (FCF), due to large capex and a still developing regulatory framework.
Source: Fitch Ratings

• National Bank of Greece announced that it has entered into a definitive agreement with funds managed by Bracebridge Capital , LLC, for the sale of 95% of the Mezzanine and Junior Notes from a securitisation backed by a portfolio of NPE with total gross book value of EUR 0.7bn.
Source: athexgroup.gr

Macro/Political
• Cyprus President Nicos Christodoulides presented a tax reform framework aimed at creating a more efficient and fair tax system. Key measures include abolishing the deemed distribution of dividends, reducing the withholding tax on actual dividends to 5% from 17%, and increasing corporate tax to 15% from 12.5%. For individuals, the tax-free income threshold will rise by EUR 1,000 to EUR 20,500, tax brackets will expand, and the 35% tax rate will apply to income over EUR 80,000. According to the Director of the Economic

Research Center of the University of Cyprus, Elena Andreou the fiscal impact includes a cost of EUR 150-170mn from individuals and EUR 230-300mn from defense contribution reductions, while expected revenues amount to EUR 220-270mn from corporate tax increases, EUR 80-130mn from other taxes, and EUR 50-70mn from VAT/Income Tax refunds.
Source: StockWatch

Markets:
• Hellenic Bank net profit for FY24 stood at EUR 382,6mn compared to EUR 365,4mn in FY23. The bank’s NPE ratio stood at 2.4% with NPE coverage and NPE overall coverage at 63% and at 149%, respectively.
Source: Hellenic Bank