Tuesday March 31, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
BoG rejects single bad bank

 Lenders have created their own units to deal with nonperforming loans and their merging would be difficult

By Yiannis Papadoyiannis

Sources from the Bank of Greece have categorically ruled out the creation of a single “bad” bank that would gather all the commercial lenders’ nonperforming loans (NPLs), which add up to some 35 percent of the total, under one roof.

If anything, senior central bank officials are making no secret of their displeasure with the persistence of talk about a national bad bank, stressing that the issue had been examined two years ago and a decision had been reached that the best option would be for the creation of internal departments within each lender to deal exclusively with the bad loans in its portfolio.

The same sources pointed out that the banking sector has been bolstered by the 50 billion euros administered by the Hellenic Financial Stability Fund (HFSF) and that any transfer of the NPLs to a new state entity would constitute an arrangement that would go against taxpayers’ interests.

Banks have already set up specialized divisions dealing with NPLs that employ over 1,000 people between them, and it would be particularly difficult and complicated for all these units to be unified.

The issue of the creation of a single bad bank returned to the forefront last week after statements by the president of the HFSF, Christos Sclavounis, who did not rule out such an option. However the government and the Bank of Greece were quick to refute that.

The central bank is in fact planning to hire BlackRock as a special consultant to assist in the liquidation of troubled lenders, with the ultimate aim being the maximization of bad loan recovery.

Today all banks under liquidation, such as the “bad” parts of ATEbank, Hellenic Postbank, Proton etc, have their own independent liquidation units that are seeking to recover as many problematic assets as possible.

BlackRock will examine the liquidation units’ current modes of operation and propose general guidelines and optimal practices aimed at accelerating the recovery rate, including timetables and quantifiable targets to be met. Estimates say more than 2 billion euros of NPLs could be retrieved from bad banks.

ekathimerini.com , Monday Jul 21, 2014 (20:45)  
Hoteliers hire firm to monitor illegal tourism accommodation
Construction crumbles by 80 percent in just five years
Cosco plans for ship repair unit at Salamina
Greek bourse benchmark closes at the day’s high
Major effort under way after floods in Serres
Local authorities, residents and members of the armed forces in Serres, northern Greece, worked together on Monday in an effort to limit the damage caused by the Strymonas River, which broke...
Golden Dawn´s No 2 released, as protests over trial linger
Just weeks before the leadership and around 70 members of Golden Dawn are to go on trial, the neo-Nazi party’s second-in-command, Christos Pappas, was released from jail on Sunday as the 18-...
Inside News
SOCCER
Cyprus soccer eyes reunion after 60-year divorce
Turkish Cypriot soccer officials on Monday vowed to press ahead with attempts to reunite with the Cyprus Football Association, (CFA), triggering a political storm on the ethnically-split isl...
SOCCER
Three Greek internationals injured in Budapest car crash
Three Greek international soccer players were slightly injured on Monday in a car crash as they travelled by taxi to Budapest airport following Greece's Euro 2016 qualifying goalless draw ag...
Inside Sports
INTERVIEW
Releasing migrants from detention centers not enough, says UN rights watchdog
The Greek government's shift on immigration is “the beginning of what will no doubt be a difficult process,” according to Jan Jarab, regional representative for Europe of the High Commission...
COMMENTARY
Tsipras needs rupture with far-left, not Brussels
Does Alexis Tsipras, the Greek prime minister, have the guts to break with his far-left faction? The country’s fate hangs on the answer to this question. Greece’s immediate prospects are dic...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Cyprus soccer eyes reunion after 60-year divorce
2. Hoteliers hire firm to monitor illegal tourism accommodation
3. Construction crumbles by 80 percent in just five years
4. Cosco plans for ship repair unit at Salamina
5. Major effort under way after floods in Serres
6. Golden Dawn´s No 2 released, as protests over trial linger
more news
Today
This Week
1. ECB nerves fray on Greece as supervisors rile central bankers
2. Greek markets show all at risk should mistake trigger a default
3. Talks in Brussels continue but Greece and lenders 'not there yet'
4. Greece says not backing down on debt relief goal
5. Work on tram extension begins in Piraeus
6. European stock-index futures rise as investors look to Greece
Today
This Week
1. Next Monday is D-Day for state funds
2. Eurogroup unlikely to be held soon to discuss Greek reforms
3. Moscow expects progress from Tsipras visit
4. Some more equal than others
5. Greece to present reforms by Monday, says gov't spokesman [Update]
6. Greece optimistic on deal with euro area next week
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.