ATHENS – It took €50 billion ($53.68 billion) in aid and the selling off of bad loans to collection agencies, which are now hounding debtors for repayment, but Greece’s big four banks are raking in revenues while offering low or no interest to depositors.

In a review of the banks’ comeback, which occurred during a 2010-18 economic and austerity crisis that required €326 billion ($350.07 billion) to keep Greece afloat, The Financial Times outlined how the banks rebounded.

“Shares have been flying off the shelves,” the publication said, with Greece’s bank bailout fund selling 27% of its stake in Piraeus Bank for €1.35 billion ($1.45 billion) in February, with enough demand to cover a secondary sale and even a slight premium given.

This development followed an Initial Public Offering (IPO) for Athens International Airport, rated one of Europe’s best, which in 2023 saw record tourist arrivals as the country continued to recover with the waning of the COVID-19 pandemic.

At the end of 2023, the New Democracy government, which accelerated recovery and growth, also sold state stakes in the National Bank of Greece, Eurobank, and Alpha Bank, the other three major financial institutions.

“Greece is an unlikely market darling. But the country has staged a remarkable recovery following the financial crisis, with falling wages, improving competitiveness, and healthy gross domestic product growth,” the report noted.

The domestic stock market index, the ASE, has risen almost 40% over the past year, outperforming the S&P 500, and the 10-year debt yields are at 3.2%, far below Italy’s at 3.6% and the United Kingdom at 4%.

Non-performing loans have dropped to 5%, down from a peak of up to 40% when people suffering from big pay cuts, tax hikes, slashed pensions, and worker firings under austerity measures couldn’t pay but are now being pursued by collectors.

“Returns on equity are in the double digits, trending towards the European average. This, coupled with valuations at about 6 times forward consensus earnings and a 15% discount to the European average, explains why investors have been so keen on recent stake sales,” the publication said.

Despite all this, the bailouts barely reduced the debt, and Greece remains reliant on tourism revenues amid concerns that climate change—which brought record heat, deadly fires, and floods in 2023—will deter some visitors in 2024.

“But with EU funds worth 17% of GDP earmarked for its reconstruction and recovery, and a highly regarded government in place, the country may well produce sunny newsflow in the coming year, too,” the report concluded.