The Greek Medium Bank has launched a plan to reduce bad loans

Greek banks are at the highest rate of non-performance taxes.

November 22, 2018 at 21:57 TASR

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Athens. The Greek central bank published Thursday's recommendation to remove "the sum of bad credit" from commercial banking opportunities. Their ratio may be in relation to the total number of loans in a one-digit figure over two to three years.

The middle bank hopes that this proposal will help meet the debt depreciation date in banks set by regulatory authorities.

Greek banks have the highest level of non-performance exposures (NPEs) in Europe, with over 45% classified as badly bad.

Under the recommendation of the Central Bank, the "large sections" of the NPEs and their SPVs commercially moved to a special vehicle.

Then the SPV would pay over payment of fees paid (tax agreements to companies making a loss) to a claim against the State. The move will be financed by bankruptcy cases, said the main bank.

However, the middle bank did not name the value of the loans that were moved and its claim that independent third parties should be handled. It is expected that banks will carry out a single-dimensional NPE performance over the last three years from the beginning of the year; business.

Banks in Greece have been approved by Central Central Banking, the United Kingdom Management Specification (SSM), to take steps to reduce bad loans by 37% to 64.6 billion euros by the end of 2019.

The Greek central bank said that this proposal would have a "just and drastic" reduction in its NPE and will allow it to be subordinated to the single-digit figure within two years or three years.

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