ECONOMY

Banks want to cut bad loans by 60 bln euros by end-2021

banks-want-to-cut-bad-loans-by-60-bln-euros-by-end-2021

The new three-year plans aimed at cutting bad loans to be presented to the Single Supervisory Mechanism by banks at end-March will be bolder and more front-heavy.

Estimates say the target for the reduction of nonperforming exposures that Alpha, Eurobank, National and Piraeus will commit to reach by end-2021 will be almost 60 billion euros in total – greater than the 50 billion euros that was included in the previous plans submitted in October.

This is seen as very ambitious, given also the forecasts for an economic growth rate of 2-2.3 percent that bank officials say can’t in itself sustain a more vigorous NPE reduction.