The impact of the pandemic on the Greek credit sector has only been moderate, the European Commission said on Wednesday, mainly thanks to the support measures the Greek and European authorities have taken; however, the full effect on the balance of nonperforming loans will not become obvious before 2022, it added in its 11th post-bailout report on the Greek economy.
Brussels comments that although the agreed policies have started being implemented, progress has been slower than expected: The first signs from the activation of the new bankruptcy framework have been encouraging, but it is too early to assess its efficiency. As for the state entity for buying and leasing back properties, the report records its launch has been delayed and is not expected before mid-2022, although that does not affect other aspects of the bankruptcy framework.
It further points out that the processing of the outstanding cases of the Katseli law, on the protection of insolvent households, has also started but it is likely to miss its end-2021 deadline for completion. This delay is attributed to the fact courts were forced to remain closed for several months.