Monday December 22, 2014 Search
Weather | Athens
13o C
8o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Natural selection for the country’s troubled firms

 PwC recommends debt write-off and shutdown of 650 ‘zombies’

By Evgenia Tzortzi

Restructuring the Greek business sector will require some 25 billion euros for the viable enterprises to stand out from the unsustainables, PricewaterhouseCoopers (PwC) estimates in a report presented on Monday in Athens.

Titled “The Prospects of Greek Enterprises on their Way Out of the Crisis: Stars & Zombies,” the study is expressly in favor of the immediate liquidation of 650 problematic corporations with the write-off of 15 billion euros of debts by the banks, while the funding needs of the companies with sustainability features amount to 10 billion euros.

The PwC study, which focused on 2,950 firms, has concluded that 650 enterprises have trapped funds as they absorb more resources than they produce and therefore deprive potentially healthy firms of the resources they have greater need of.

According to PwC’s general director in Greece, Costas Mitropoulos, the liquidation of troubled enterprises and the write-off of those debts is feasible for banks as they have already made their provisions. Such an initiative would allow for the more efficient management of the firms that have resisted the pressures from the financial crisis and are showing potential.

The survey found that 1,269 enterprises are showing cash flow and borrowing problems and require initiatives for restructuring, funding and share capital increases, with which the banks will have to deal separately and individually. According to PricewaterhouseCoopers, the economic climate favors the restructuring of enterprises, as it confirms the liquidity that exists in the market and the investment interest by private equity firms, with over 2,000 investment opportunities waiting.

The debts of the 650 so-called zombies amount to 25 percent of loan portfolios and their restructuring will release liquidity and assets worth 2 billion euros that will return to economic production, the study found.

ekathimerini.com , Monday May 19, 2014 (21:59)  
Alpha Bank Cyprus to absorb local Emporiki
Greece’s 10-year bond yield drops 13 bps to 8.30 pct
Traders stay focused on Tuesday’s vote
Spanish bond gains push yield to record low as Greek debt rises
Police collar fraudsters who conned money out of jobless
Police in Thessaloniki, northern Greece, have arrested four suspects charged with defrauding unemployed people out of a combined total of more than 30,000 euros. Among the suspects is a 42-y...
Bill aims to close down landfills, curb EU fines
Draft legislation aimed at minimizing European Union fines for noncompliance with waste management directives, which was submitted in Parliament Monday, foresees the closure of all illegal l...
Inside News
SOCCER
Special day for Abidal, lucky one for PAOK
PAOK scraped through its Livadia challenge beating Levadiakos to remain on top of the Super League for Christmas, one point ahead of Olympiakos that enjoyed a great game at Kalloni and offer...
BASKETBALL
Explosive Barca unfazed by Panathinaikos, bomb scare
Panathinaikos lost 80-67 at home to Barcelona on Friday in a rather meaningless game at the end of the first group stage of the Euroleague, but the encounter will be remembered for the bomb ...
Inside Sports
INTERVIEW
Klaus Regling stresses debt sustainability through commitment to reforms
BRUSSELS – The man who is responsible for the loans to Greece as managing director of the European Stability Mechanism (ESM/EFSF), Klaus Regling, is the only high-ranking European official w...
INTERVIEW
‘Crisis of confidence will come back again and again,’ says Thomas Piketty
He’s treated like a rock star wherever he goes to lecture. His book “Capital in the 21st Century,” a study on income and wealth inequality from the 18th century to the present, recently tran...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Police collar fraudsters who conned money out of jobless
2. Bill aims to close down landfills, curb EU fines
3. Alpha Bank Cyprus to absorb local Emporiki
4. Greece’s 10-year bond yield drops 13 bps to 8.30 pct
5. Traders stay focused on Tuesday’s vote
6. Inspector finds serious problems in doctors´ fund management
more news
Today
This Week
1. Prosecutor gathers depositions in Independent Greeks 'bribe' probe
2. Euro shaky on ECB and Greece, dollar keeps edge
3. Government accuses SYRIZA and Independent Greeks of 'clear alliance'
4. Greek parliament vote in balance after Samaras election offer
5. Draghi starts squaring QE circle in month of persuasion for ECB
6. Klaus Regling stresses debt sustainability through commitment to reforms
Today
This Week
1. Samaras summons bond vigilantes with euro exit talk
2. High stakes
3. Europe's drama in Greece needs final act to avoid tragedy
4. A friendly yet firm message from Pierre Moscovici
5. On the edge but not gutless
6. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.