ECONOMY

Athens applies for Hercules 2 asset protection scheme

athens-applies-for-hercules-2-asset-protection-scheme

The Greek banking system is “turning a page” and can view the post-pandemic period with optimism following the government’s official request for an extension of the “Hercules” scheme that will permit them to drastically reduce nonperforming loans in the coming months, according to a Finance Ministry press release on Monday.

Deputy Minister responsible for the financial system George Zavvos submitted the request to the European Commission Directorate-General for Competition last Friday, the press release said, making the following remarks:

“The government, acting according to a specific plan and in record time, after the success of the Hercules scheme during the first year of its operation, is now seeking its immediate extension, so that the Greek banks can reduce NPL ratios to single-digit percentages in the coming months. With Hercules 2, the banking system is turning the page and can look forward with optimism to the day after the pandemic. Greek banks should be well prepared for their critical involvement with the significant resources of the Recovery and Resilience Fund that should be effectively channeled towards the real economy. Thus, the banks, freed from the weight of nonperforming loans, will be able to effectively perform their role, which is nothing else than the financing of the Greek economy, businesses and households, contributing thus to the dual transformation of the country’s productive base and the banking system.”