ECONOMY

Ministry asks HFSF to go ahead with NPE guarantee mechanism

Ministry asks HFSF to go ahead with NPE guarantee mechanism

The Finance Ministry (pictured) has given the Hellenic Financial Stability Fund the nod for the creation of a mechanism to guarantee the transfer of a part of banks’ bad loans in an effort to contain nonperforming exposures, HFSF chief executive officer Martin Czurda said yesterday.

"The finance minister, whom I met last Monday, is convinced about the importance of creating a guarantee mechanism," the fund’s head told a conference in Athens.

He also noted that the initiative on which the HFSF is working should be based on the Italian model as it will securitize debts of 10-15 billion euros.

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