Saturday March 28, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece to offer law on restructuring bad loans next month

By Nikos Chrysoloras & Rebecca Christie

Greece’s government will draft a new legal framework by early September for restructuring non-performing loans, Development Minister Nikolaos Dendias said.

The issue is a “top priority” for the ministry and the government, Dendias told reporters in Athens today. He said the draft law will move forward if it receives no objection from the so-called troika of the European Commission, the European Central Bank and the International Monetary Fund.

Strategic defaulters shouldn’t assume they’ll be allowed to avoid paying back their loans, Dendias said. “People who intentionally default on their debts should not expect to be pardoned by this law,” he said, according to a transcript of Wednesday’s press conference.

After six consecutive years of recession that wiped out almost a quarter of the Greek economy, banks’ bad loans have ballooned to around 77 billion euros ($103 billion) -- more than 40 percent of the Mediterranean country’s gross domestic product.

Dendias said today that the government’s proposals for handling bad loans won’t affect the capital position of Greek lenders. As a result, the plans shouldn’t affect the ongoing euro area-wide stress tests conducted under the auspices of the European Central Bank as it takes over bank supervision.

In the first quarter of this year, loans more than 90 days overdue were 37.9 percent of total loans extended by Piraeus Bank (TPEIR), 33.3 percent at Alpha Bank (ALPHA), 23 percent at the National Bank of Greece, and 30.9 percent at Eurobank, according to the respective filings of the biggest Greek lenders.

Spokeswomen for the IMF and the European Commission did not have immediate comment.

[Bloomberg]

ekathimerini.com , Thursday August 14, 2014 (09:38)  
Bank accounts continue to bleed
Hania and Athens are the top picks for Easter visitors
Landlords to pay tax on unpaid rent
Air arrivals grow 20 pct in Jan-Feb 2015
Defense minister Kammenos sues commentator for 1 mln euros
Defense Minister Panos Kammenos has sued commentator Andreas Petroulakis for 1 million euros in damages over a critical article posted on the Protagon website on March 17. In a statement pos...
Reform talks move to Brussels
The Brussels Group, technical teams from Greece and its lenders, is on Saturday due to begin discussing the details of Athens reform proposals, which were completed Friday and will determine...
Inside News
BASKETBALL
Greens live dangerously in Istanbul
Panathinaikos played with fire in Istanbul, but still managed to beat Galatasaray 86-84 on Friday and climb to the third sport of its group two games before the end of the Euroleague top-16....
SOCCER
Greek federation backs injured Holebas
The Greek soccer federation on Friday insisted that international defender Jose Holebas had been dropped from team training in Austria because of injury and not for any other reason. Media r...
Inside Sports
COMMENTARY
Time to get moving
More than two months have passed since the elections and the government has to stop running around in circles and adopt a program of specific reforms, with detailed calculations as to their ...
EDITORIAL
The same old story
One of those infamously bad practices that the political system has been accused of for years is being propagated by the new government today, as it is appointing party cadres and politician...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greens live dangerously in Istanbul
2. Bank accounts continue to bleed
3. Hania and Athens are the top picks for Easter visitors
4. Landlords to pay tax on unpaid rent
5. Air arrivals grow 20 pct in Jan-Feb 2015
6. Cash injection from state debtors
more news
Today
This Week
1. Greek future as trade hub in limbo amid Syriza split on railways
2. Greek gov't denies finance minister Varoufakis to resign [Update]
3. Bundesbank's Weidmann says euro zone debt in 'danger zone,' opposes more aid for Greece
4. New Democracy's political council convenes to decide line opposite gov't
5. Clocks go forward one hour on Sunday
6. Berlin says has no exact information about Greek reforms
Today
This Week
1. Next Monday is D-Day for state funds
2. EU asks Greece for more reforms to speed talks on bailout
3. PM faces Merkel amid race to detail reforms
4. Some more equal than others
5. Greece to present reforms by Monday, says gov't spokesman [Update]
6. Looking at the Chinese model
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.