Crisis has cost credit sector 100 bln euros

By Yiannis Papadoyiannis

The crisis has cost the local banking sector no less than 100 billion euros to date due to the debt restructuring (PSI) and nonperforming loans. Today Greek banks are hoping that the results of the recent stress tests, which are scheduled to be announced after February 20, will not send the bill even higher.

The state bond haircut and loans to state corporations have set domestic banks back a cool 45.3 billion euros, while BlackRock Solutions has calculated losses from bad loans at a total of 45 billion euros. Thankfully a large part of the losses from NPLs was covered by the provisions banks had made in previous years.

Lenders have also lost some 10 billion euros from the voluntary buyback of their bonds, which means that the actual haircut they suffered amounted to 73.4 percent.

The worst year for banks was 2011, during which they lost an estimated 28.3 billion euros, while 2012 saw losses of approximately 5.3 billion euros. These combined losses of over 28.5 billion euros dwarf the profits banks made in the decade from 2001 to 2010, amounting to 18 billion euros in total.