Re­view de­lay dam­ages bank plans

Kathimerini English - - Focus - YIAN­NIS PAPADOYIANNIS

Greek banks are be­ing forced to re­vise their main tar­gets for 2017 down­ward due to de­lays in the com­ple­tion of the sec­ond bailout re­view. These tar­gets in­clude prof­its, fresh de­posits, new loans and the re­duc­tion of non­per­form­ing loans.

Bank of­fi­cials say that the mo­men­tum for a strong eco­nomic re­bound of more than 2 per­cent in 2017 – on which the lenders’ tar­gets were based – ap­pears to have been lost. That sce­nario had re­lied on the re­view be­ing con­cluded in Novem­ber 2016, im­prov­ing the cli­mate con­sid­er­ably and lay­ing the ground­work for a strong re­cov­ery this year.

A se­nior bank of­fi­cial told Kathimerini that if the re­view had been con­cluded, the coun­try would have been count­ing down the days to its in­clu­sion in the Euro­pean Cen­tral Bank’s bond-buy­ing pro­gram, a key step to­ward restor­ing con­fi­dence and im­prov­ing the mar­ket sen­ti­ment. If that had hap­pened, banks would have been able to achieve an increase in de­posits of more than 6 bil­lion eu­ros and more than 5 bil­lion in new loan is­sues.

The chances of that out­come have now been min­i­mized, as the re­view is not ex­pected to be con­cluded be­fore Fe­bru­ary, to say noth­ing of the un­cer­tainty gen­er­ated by the change in the US ad­min­is­tra­tion.

State sell-off fund TAIPED is to­day ex­pected to set a new dead­line for the sub­mis­sion of of­fers for the ma­rina at Py­los in the south­west­ern Pelo­pon­nese. To­day’s orig­i­nal dead­line will be ex­tended to March 12 at the re­quest of po­ten­tial investors.

Banks must re­vise the tar­gets they set for this year be­cause the bailout re­view has not been com­pleted.

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