Athens warned to take ac­tion on bad bank loans

Kathimerini English - - Front Page -

Greece’s cred­i­tors have urged author­i­ties to take ac­tion to deal with the prob­lem of non­per­form­ing loans bur­den­ing Greek banks, warn­ing that cred­i­tors will not con­trib­ute to re­cap­i­tal­iz­ing Greek banks again, which would mean bank share­hold­ers and de­pos­i­tors could be obliged to join a res­cue.

De­spite a se­ries of leg­isla­tive ini­tia­tives by the Greek gov­ern­ment, the prob­lem of NPLs re­mains un­tack­led, rep­re­sen­ta­tives of Greece’s cred­i­tors have told Athens.

The same sources have in­di­cated that should there be a need for a third round of re­cap­i­tal­iza­tion, that would be car­ried out in line with Euro­pean bank­ing di­rec­tives in­tro­duced in Jan­uary of this year ac­cord­ing to which share­hold­ers, bond­hold­ers and even those with sav­ings that ex­ceed 100,000 eu­ros would be obliged to par­tic­i­pate in a so-called bail-in.

A pro­tracted strike by Greek lawyers, which ended in Septem­ber, and an on­go­ing boy­cott by Greek no­taries of first-home fore­clo­sures has pre­vented banks from col­lect­ing much-needed rev­enue.

Mort­gage-hold­ers and ac­tivists have been protest­ing against fore­clo­sures for months.

Yes­ter­day, large crowds gath­ered at court­houses in Athens and Thes­sa­loniki. Around 150 pro­test­ers barged into the Athens Mag­is­trates Court and forced the no­taries in at­ten­dance out of the premises while heck­ling them. There were sim­i­lar scenes at Thes­sa­loniki Mag­is­trates Court. The pro­test­ers staged their demon­stra­tions de­spite the fact that Greek no­taries have been re­frain­ing from at­tend­ing court cases for fore­clo­sures on pri­mary res­i­dences for the past month. The union rep­re­sent­ing Greek no­taries has called on the gov­ern­ment to clar­ify the le­gal sit­u­a­tion re­gard­ing re­pos­ses­sions, es­pe­cially re­lat­ing to pri­mary res­i­dences, “to en­sure the le­gal­ity and smooth­ness of the pro­ceed­ings.”

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