Friday December 19, 2014 Search
Weather | Athens
17o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
New banking measures aimed at tackling nonperforming loans

By Yiannis Papadoyiannis

The Bank of Greece is expected to deliver its latest code of ethics for the sector within the current week, possibly even today, as commercial banks scramble to deal with a mass of nonperforming loans (NPLs).

According to sources, the new code will include a series of measures aimed at lessening the burden on debtors and offering a lifeline to the banking system in the form of interest rate reductions on NPLs, decreased interest rate margins, changes of interest rate type without any penalty charges, loan replacements, as well as payback period extensions.

At present, approximately 35 percent of loans valued at 75 billion euros in total are not being serviced. The future of the banking industry, and, by extension, economic activity, greatly depends on how effectively the perilous accumulation of NPLs can be dealt with.

Banks are said to be facing the most trouble from business loans extended to enterprises now struggling to survive. Very few companies that filed for bankruptcy protection from creditors with the aim of restructuring their operations have managed to relaunch successfully through new business models. At best, most companies that find themselves in difficulty are either struggling to remain afloat or sinking into even deeper trouble.

Also, the increased number of NPLs is depriving more robust firms of credit.

Banking officials have underlined that the problems posed by troubled business loans cannot be confronted through universal measures that apply for all, saying that, instead, all cases need to be handled individually.

MPs of junior coalition partner PASOK are scheduled to meet tomorrow with Minister of Development and Competitiveness Nikos Dendias to discuss the challenges faced by the banking sector.

All EU banks will be subject to a new round of stress tests in October. Late last week, market analyst reports said that Greek banks were sturdily positioned.

ekathimerini.com , Saturday August 23, 2014 (18:28)  
Importers told to pay up in advance
Jobless rate posts steady decline
Piraeus and KKR strike loans portfolio deal
German approval and praise come at key time
Independent Greeks leader backs MPs bribery claims, threatens to release video
At an emergency press conference on Friday, Independent Greeks leader Panos Kammenos backed allegations by his MP Pavlos Haikalis according to which a middleman tried to bribe the latter to ...
Ministry rebuffs reports that Amphipolis skeleton has been identified
The Greek Culture Ministry on Friday denied press reports according to which the human remains discovered in an excavation at the site of Ancient Amphipolis in northern Greece have been iden...
Inside News
SOCCER
PAOK loss at Giannina brings Olympiakos to within a point
The bad losses that PAOK and Panathinaikos suffered on the road on Thursday allowed Olympiakos to gain significant ground on the table and come to within one point from the top after the mid...
BASKETBALL
Reds lose in Turkey to motivated Galatasaray
Olympiakos went down at Galatasaray 79-74 on Thursday for its second defeat in the first round of the Euroleague that ended with the Reds topping their pool with eight wins in 10 games. With...
Inside Sports
COMMENTARY
New weapons of diplomacy
Hollywood screenwriters couldnt make it up: That Sony, one of the worlds biggest film producers, would be forced to pull a comedy about the assassination of North Koreas dictator after a ...
EDITORIAL
Oblivious to change
The world around us is undergoing many important changes while we sit around stewing in our own juices. US President Barack Obama is actually talking with Cubas Raul Castro, for example, bu...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Independent Greeks leader backs MPs bribery claims, threatens to release video
2. Ministry rebuffs reports that Amphipolis skeleton has been identified
3. Govt spokeswoman says bribery claims badly-played charade, heralds legal action if evidence not produced
4. Former premier Mitsotakis to meet President Papoulias to discuss political upheaval
5. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
6. Independent Greeks MP Haikalis claims attempted bribery for presidential vote
more news
Today
This Week
1. Independent Greeks MP Haikalis claims attempted bribery for presidential vote
2. Greek PM Samaras confronts peril putting his Greek transformation to vote
3. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
4. Former premier Mitsotakis to meet President Papoulias to discuss political upheaval
5. Gov't spokeswoman says bribery claims 'badly-played charade,' heralds legal action if evidence not produced
6. Ministry rebuffs reports that Amphipolis skeleton has been identified
Today
This Week
1. Juncker warns Greeks against voting 'extreme forces' into power
2. Romanos and the dilemma
3. Samaras summons bond vigilantes with euro exit talk
4. A friendly yet firm message from Pierre Moscovici
5. High stakes
6. Gap between SYRIZA and New Democracy closing, says poll
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.