Business | Daily | Tourist
INFORMATION SERVICES

ATHENS – Some 77 billion euros in non-performing loans during a crushing economic crisis is jeopardizing Greek government hopes that a bank recapitalization will kick start lending and bring balance to the sector.

About 43 billion euros of that is in corporate loans, especially fish farming and coastal shipping, while Greeks besieged by austerity measures have also been unable to pay their loans, credit cards and mortgages.

Bankers are working toward restructuring loans after great reluctance to do so, as they had been insisting that people who couldn’t pay had to pay, although exempting the ruling parties of Prime Minister Antonis Samaras’ New Democracy Conservatives and his partner the PASOK Socialists, who together owe 250 million euros in bad loans.

They aren’t being chased for the money with banks relying on the government to come up with 50 billion euros in recapitalization after being pushed into difficulty when a former administration under PASOK stiffed investors and bond holders with 74 percent losses.

The results of the European Central Bank’s (ECB) ongoing stress tests on 128 banks across the Eurozone, including four Greek lenders, look like they will not be made public for some time yet.

In October, the banks undergoing the stress tests – among which Greece’s National, Piraeus, Alpha and Eurobank – will receive analytical reports and have to submit proposals within 15 days as to how they plan to cover any capital gaps. They will have to implement these measures within six to nine months.

So far, the government believes it will have to kick in about 4 billion euros more to help the banks, although it could be as high as 5 billion euros.

In the meantime, heavily-indebted Greek households who were promised help and debt restructuring plans by the government have been ignored.

 

 

 

The post Bad Loans Threaten Bank Plans appeared first on The National Herald.

Source: The National Herald
Share it now!
More
Who We Are

GQS acts as an “information representative” providing a variety of accurate and authoritative analytics and responses About Greece. Our field of expertise ranges from simple Daily Life questions related to Tourism or the History of Greece, up to large Business related projects such as Economic Research, Human Resources Selection or Real Estate Services.

Find out more

Contact Us

Are you interested in obtaining any kind of information about Greece?

Let us help you!

If your requirements go beyond simple services and you want specialized information, you will receive a detailed email for any charges.

  • Weather

    Locations:
    Athens
    August 23, 2017, 11:13 am
    Partly sunny
    Partly sunny
    27°C
    real feel: 27°C
    current pressure: 1020 mb
    humidity: 47%
    wind speed: 4 m/s N
    wind gusts: 4 m/s
    UV-Index: 6
    sunrise: 6:47 am
    sunset: 8:08 pm
     
  • Currency