BUSINESS

Moody’s issues warning to banks over review delay

YIANNIS PAPADOYIANNIS

TAGS: Banking, Economy

Moody’s warned in a report published on Monday about the serious consequences the delay in the second bailout review will have on the implementation of plans for the reduction of bad loans, on banks meeting their profit targets and on their liquidity.

The international ratings agency described the constant delays in the review as “credit negative” for the domestic credit system, and warned that any further holdups will further weaken the position of Greek banks while increasing the risks for them and for their depositors ahead of the next stress test by the European Central Bank in 2018.

Banks have already downwardly revised their main targets for the year, concerning the attraction of deposits, the issue of nonperforming loans, the reduction of bad loans and their profits for 2017.

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