Bloomberg: Greece could face new crisis if NPEs are not reduced


Greece may risk a new financial crisis if its banks do not succeed in ridding their balance sheets of their bad loans, news agency Bloomberg said in an article on Friday.

Bloomberg said "crippled banks remain one of the biggest hurdles" to Greece’s economic recovery, noting those loans make up almost half of total lending.

“There are even worries that the country may face yet another financial crisis if it can’t dislodge its lenders from their downward spiral,” the news agency claimed and noted the plan presented by the Bank of Greece to help banks speed up efforts to reduce them.

It also mentioned that the country’s largest banks have been recapitalized three times since the start of its debt crisis – most recently in 2015.