BUSINESS

Bank of Greece reportedly working on plan for slashing NPLs

TAGS: Finance, Banking

The Bank of Greece has a plan for helping the country's banks slash their pile of nonperforming loans by as much as half, according to a report by Bloomberg on Tuesday.

Citing two people with knowledge of the matter, Bloomberg said that under the central bank's plan, a special purpose vehicle would be responsible for buying around 42 billion euros of bad loans from Greek lenders, using money raised from the sale of bonds secured against the banks' deferred taxes, which currently account for most of their capital.

According to Bloomberg, the Bank of Greece’s plan has been submitted to the European Central Bank’s Single Supervisory Mechanism and the Greek Finance Ministry, while any use of public guarantees is subject to approval by European Commission competition authorities.

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