NEWS

Athens warned to take action on bad bank loans

TAGS: Banking, Economy, Society

Greece’s creditors have urged authorities to take action to deal with the problem of nonperforming loans burdening Greek banks, warning that creditors will not contribute to recapitalizing Greek banks again, which would mean bank shareholders and depositors could be obliged to join a rescue.

Despite a series of legislative initiatives by the Greek government, the problem of NPLs remains untackled, representatives of Greece’s creditors have told Athens.

The same sources have indicated that should there be a need for a third round of recapitalization, that would be carried out in line with European banking directives introduced in January of this year according to which shareholders, bondholders and even those with savings that exceed 100,000 euros would be obliged to participate in a so-called bail-in.

A protracted strike by Greek lawyers, which ended in September, and an ongoing boycott by Greek notaries of first-home foreclosures has prevented banks from collecting much-needed revenue.

Mortgage-holders and activists have been protesting against foreclosures for months.

On Wednesday, large crowds gathered at courthouses in Athens and Thessaloniki. Around 150 protesters barged into the Athens Magistrates Court and forced the notaries in attendance out of the premises while heckling them.

There were similar scenes at Thessaloniki Magistrates Court.

The protesters staged their demonstrations despite the fact that Greek notaries have been refraining from attending court cases for foreclosures on primary residences for the past month.

The union representing Greek notaries has called on the government to clarify the legal situation regarding repossessions, especially relating to primary residences, “to ensure the legality and smoothness of the proceedings.”

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