BUSINESS

S&P: Approval of Hercules should speed up drop in NPLs

TAGS: Banking

The Greek Parliament’s approval of the Hercules asset protection scheme should accelerate Greek banks’ sales of nonperforming loans (NPLs) and bring exposure down further, to 20 percent, within the next two years, S&P Global Ratings said in a report published late on Thursday.

Key market players are confident that the recently approved Hercules scheme, which is the Greek banks’ and government’s preferred tool, will help reduce the ratio to 20 percent.

However, this ambitious target might be affected by the credit distress caused by the spread of Covid-19.

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