BoG to issue NPL handling permits by the end of the year

BoG to issue NPL handling permits by the end of the year

The Bank of Greece will need to issue five operating licenses to nonperforming loan management companies by the end of the year, according to the draft revision of the bailout agreement Greece’s creditors have given the government.

The central bank will also have to reassess the institutional framework in the NPL market, proposing the necessary changes that would allow for the creation of an efficient secondary bad-loan management market.

The issue of NPLs rank high on the list of interventions required in the coming weeks and months, including the lifting of the obstacles raised to date and the revision of the law on the market. Companies seeking to enter it demand that they will be able to buy the loans they manage as well as become active in the property market, considering the current legal framework confining them to loan management as too restrictive.

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