PwC ex­perts see bad loans ris­ing to 40 pct by end of year

Kathimerini English - - Front Page - YIAN­NIS PAPADOYIANNIS

Non­per­form­ing loans( NPLs) in Greece will rise to a stag­ger­ing 40 per­cent by the end of 2014, ac­cord­ing to Pricewaterhouse Coop­ers ex­perts who used the same pa­ram­e­ters that Black­Rock So­lu­tions did dur­ing lo­cal banks’ last stress tests.

Sta­bi­liz­ing bad loans is the big­gest chal­lenge for lo­cal lenders in 2014 and a key con­di­tion for the cash flow in the Greek econ­omy to re­turn to nor­mal. The lat­est avail­able data on NPLs re­leased by the Bank of Greece showed that loans un­paid for over three months amounted to 29.3 per­cent of the to­tal at the end of June.

Bank of­fi­cials es­ti­mate that bad loans were close to 35 per­cent at end-De­cem­ber, and that they will con­tinue to in­crease this year too, al­beit at a slower pace, be­fore peak­ing in 2015 and start­ing to de­crease from the year af­ter that. How­ever the slow­down ex­pected in the next 12 to 24 months can only take place if the pos­i­tive cli­mate is not re­versed again due to po­lit­i­cal tur­bu­lence or clashes with the coun­try’s cred­i­tors.

Newspapers in English

Newspapers from Greece

© PressReader. All rights reserved.