x

Economy

Stournaras: Greek Banks Face Burden of New NPLs Up to €10B

January 15, 2021

ATHENS — Greek banks will face a burden of new non-performing loans of 8-10 billion euros from the pandemic crisis, relatively greater compared with the burden facing other European credit institutions, Bank of Greece Governor Yannis Stournaras said on Friday.

Addressing the 8th Banking Forum, Stournaras said that Greek banks, already burdened with a high stock of NPLs, will face an even bigger burden in the future since they have exhausted the greater part – if not the entirety of – their capital reserves to deal with their huge stock of NPLs.

The central banker noted that despite the fact that Greek banks have managed to reduce their NPLs by around 50 billion euros since their peak in March 2016, they remained at very high levels (35.8 pct in September 2020), significantly above the EU average.

Stournaras stressed that Greek banks enjoy a satisfactory capital adequacy rate; however, this will be negatively affected by expected developments such as the implementation of the IFRS9 standards, the cost of securitizations of NPLs and a low quality of capital. For these reasons, Stournaras reiterated the need for the creation of a so-called "bad bank", to operate in parallel with a state guarantee "Hercules" scheme.

His proposal he said would deal with the problem of referred taxation as well and could lead to a further reduction of NPLs by 40 billion euros. He asserted that the cost of this "bad ban" will be covered exclusively by banks.

RELATED

ATHENS - With Greece being a hotspot tourist destination in 2023 and people traveling with the waning of the COVID-19 pandemic, the country’s hotels experienced a 23% increase in turnover, raking in €10.

Top Stories

Columnists

A pregnant woman was driving in the HOV lane near Dallas.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

Video

Fire Breaks Out at Apartment Building Near the Offices of TNH (Vid & Pics)

LONG ISLAND CITY, NY – A fire broke out in an apartment building about a block from the offices of The National Herald in Long Island City on February 21.

WASHINGTON — Donald Trump's legendary ability to raise massive sums of political cash may be on a collision course with a new and unpleasant reality.

HARTFORD - The state rested its case on the 25th day of the trial Michelle Troconis, the woman who allegedly conspired with her then-boyfriend Fotis Dulos to kill Jennifer Farber Dulos, his estranged wife, and helped to cover up the murder.

LONG ISLAND CITY, NY – A fire broke out in an apartment building about a block from the offices of The National Herald in Long Island City on February 21.

NEWPORT NEWS, VA. - In downtown Newport News, a significant building with a long history, the former Saints Constantine and Helen Greek Orthodox Church, established in 1949, is set for renovation according to a report by WAVY News 10.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. [email protected]

You may unsubscribe at any time using the link in our newsletter.